Critical Survey: Agree Realty (NYSE:ADC) vs. CapitaLand Integrated Commercial Trust (OTCMKTS:CPAMF)

CapitaLand Integrated Commercial Trust (OTCMKTS:CPAMF) and Agree Realty (NYSE:ADC) are both real estate companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Analyst Recommendations

This is a summary of current ratings and recommmendations for CapitaLand Integrated Commercial Trust and Agree Realty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CapitaLand Integrated Commercial Trust	0	0	0	0	0.00
Agree Realty	0	4	11	1	2.81

Agree Realty has a consensus target price of $83.94, indicating a potential upside of 13.69%. Given Agree Realty’s stronger consensus rating and higher possible upside, analysts plainly believe Agree Realty is more favorable than CapitaLand Integrated Commercial Trust.

Insider and Institutional Ownership

20.1% of CapitaLand Integrated Commercial Trust shares are owned by institutional investors. Comparatively, 97.8% of Agree Realty shares are owned by institutional investors. 1.8% of Agree Realty shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares CapitaLand Integrated Commercial Trust and Agree Realty”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CapitaLand Integrated Commercial Trust	N/A	N/A	N/A	$0.18	10.61
Agree Realty	$718.40 million	12.78	$204.35 million	$1.86	39.69

Agree Realty has higher revenue and earnings than CapitaLand Integrated Commercial Trust. CapitaLand Integrated Commercial Trust is trading at a lower price-to-earnings ratio than Agree Realty, indicating that it is currently the more affordable of the two stocks.

Dividends

CapitaLand Integrated Commercial Trust pays an annual dividend of $0.11 per share and has a dividend yield of 5.6%. Agree Realty pays an annual dividend of $3.20 per share and has a dividend yield of 4.3%. CapitaLand Integrated Commercial Trust pays out 59.1% of its earnings in the form of a dividend. Agree Realty pays out 172.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Agree Realty has raised its dividend for 1 consecutive years. CapitaLand Integrated Commercial Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares CapitaLand Integrated Commercial Trust and Agree Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CapitaLand Integrated Commercial Trust	N/A	N/A	N/A
Agree Realty	28.84%	3.90%	2.36%

Summary

Agree Realty beats CapitaLand Integrated Commercial Trust on 13 of the 15 factors compared between the two stocks.

About CapitaLand Integrated Commercial Trust

CapitaLand Integrated Commercial Trust (CICT) is the first and largest real estate investment trust (REIT) listed on Singapore Exchange Securities Trading Limited (SGX-ST) with a market capitalisation of S$13.7 billion as at 31 December 2023. It debuted on SGX-ST as CapitaLand Mall Trust in July 2002 and was renamed CICT in November 2020 following the merger with CapitaLand Commercial Trust. CICT owns and invests in quality income-producing assets primarily used for commercial (including retail and/or office) purpose, located predominantly in Singapore. As the largest proxy for Singapore commercial real estate, CICT's portfolio comprises 21 properties in Singapore, two properties in Frankfurt, Germany, and three properties in Sydney, Australia with a total property value of S$24.5 billion based on valuations of its proportionate interests in the portfolio as at 31 December 2023. CICT is managed by CapitaLand Integrated Commercial Trust Management Limited, a wholly owned subsidiary of CapitaLand Investment Limited, a leading global real estate investment manager with a strong Asia foothold.

About Agree Realty

Agree Realty Corporation is a publicly traded real estate investment trust that is RETHINKING RETAIL through the acquisition and development of properties net leased to industry-leading, omni-channel retail tenants. As of December 31, 2023, the Company owned and operated a portfolio of 2,135 properties, located in 49 states and containing approximately 44.2 million square feet of gross leasable area. The Company's common stock is listed on the New York Stock Exchange under the symbol "ADC".