Agree Realty Corporation (NYSE: ADC) is one of 34 public companies in the “Retail REITs” industry, but how does it compare to its peers? We will compare Agree Realty Corporation to similar companies based on the strength of its analyst recommendations, profitability, dividends, risk, valuation, institutional ownership and earnings.

Insider & Institutional Ownership

85.3% of Agree Realty Corporation shares are held by institutional investors. Comparatively, 86.2% of shares of all “Retail REITs” companies are held by institutional investors. 4.4% of Agree Realty Corporation shares are held by insiders. Comparatively, 11.3% of shares of all “Retail REITs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Agree Realty Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Agree Realty Corporation 0 4 6 0 2.60
Agree Realty Corporation Competitors 264 1220 1195 24 2.36

Agree Realty Corporation presently has a consensus target price of $51.88, suggesting a potential upside of 4.52%. As a group, “Retail REITs” companies have a potential upside of 15.05%. Given Agree Realty Corporation’s peers higher probable upside, analysts clearly believe Agree Realty Corporation has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Agree Realty Corporation and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Agree Realty Corporation $104.10 million $84.76 million 22.26
Agree Realty Corporation Competitors $727.99 million $483.06 million 28.60

Agree Realty Corporation’s peers have higher revenue and earnings than Agree Realty Corporation. Agree Realty Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Agree Realty Corporation pays an annual dividend of $2.02 per share and has a dividend yield of 4.1%. Agree Realty Corporation pays out 90.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Retail REITs” companies pay a dividend yield of 4.3% and pay out 143.3% of their earnings in the form of a dividend. Agree Realty Corporation has raised its dividend for 4 consecutive years.

Profitability

This table compares Agree Realty Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Agree Realty Corporation 54.22% 8.23% 4.91%
Agree Realty Corporation Competitors 21.35% 5.12% 2.89%

Risk & Volatility

Agree Realty Corporation has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Agree Realty Corporation’s peers have a beta of 0.67, indicating that their average share price is 33% less volatile than the S&P 500.

Summary

Agree Realty Corporation peers beat Agree Realty Corporation on 9 of the 15 factors compared.

About Agree Realty Corporation

Agree Realty Corporation (Agree Realty) is an integrated real estate investment trust (REIT) primarily focused on the ownership, acquisition, development and management of retail properties. The Company operates through Agree Limited Partnership (the Operating Partnership). As of December 31, 2016, its portfolio consisted of 366 properties located in 43 states and totaling approximately seven million square feet of gross leasable area (GLA). As of December 31, 2016, its portfolio included 363 net lease properties, which contributed approximately 98.1% of annualized base rent, and three community shopping centers. The Company’s business objective is to generate consistent shareholder returns by investing in and actively managing a diversified portfolio of retail properties net leased to industry tenants. Its community shopping centers include Capital Plaza, Frankfort; Central Michigan Commons, Mount Pleasant, and West Frankfort Plaza, West Frankfort.

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