Agree Realty (NYSE: ADC) and Pennsylvania R.E.I.T. (NYSE:PEI) are both small-cap financials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.
Institutional & Insider Ownership
89.7% of Agree Realty shares are owned by institutional investors. 4.4% of Agree Realty shares are owned by insiders. Comparatively, 4.4% of Pennsylvania R.E.I.T. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Agree Realty pays an annual dividend of $2.08 per share and has a dividend yield of 4.4%. Pennsylvania R.E.I.T. pays an annual dividend of $0.84 per share and has a dividend yield of 8.1%. Agree Realty pays out 99.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pennsylvania R.E.I.T. pays out -94.4% of its earnings in the form of a dividend. Pennsylvania R.E.I.T. has raised its dividend for 5 consecutive years. Pennsylvania R.E.I.T. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Agree Realty and Pennsylvania R.E.I.T.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Agree Realty and Pennsylvania R.E.I.T.’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Agree Realty||$116.56 million||11.76||$58.11 million||$2.10||22.45|
|Pennsylvania R.E.I.T.||$367.49 million||1.98||-$29.34 million||($0.89)||-11.62|
Agree Realty has higher earnings, but lower revenue than Pennsylvania R.E.I.T.. Pennsylvania R.E.I.T. is trading at a lower price-to-earnings ratio than Agree Realty, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for Agree Realty and Pennsylvania R.E.I.T., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Agree Realty presently has a consensus target price of $55.14, indicating a potential upside of 16.98%. Pennsylvania R.E.I.T. has a consensus target price of $12.08, indicating a potential upside of 16.86%. Given Agree Realty’s stronger consensus rating and higher probable upside, research analysts clearly believe Agree Realty is more favorable than Pennsylvania R.E.I.T..
Volatility and Risk
Agree Realty has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, Pennsylvania R.E.I.T. has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.
Agree Realty beats Pennsylvania R.E.I.T. on 11 of the 16 factors compared between the two stocks.
Agree Realty Company Profile
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.
Pennsylvania R.E.I.T. Company Profile
Pennsylvania Real Estate Investment Trust (PREIT) is a self-managed and self-administered real estate investment trust (REIT). The Company’s primary business is owning and operating retail shopping malls, which it does primarily through operating partnership, PREIT Associates, L.P. (PREIT Associates). The Company is engaged in the ownership, management, leasing, acquisition, redevelopment, development and disposition of shopping malls. The Company has a primary investment focus on retail shopping malls located in the eastern half of the United States, primarily in the Mid-Atlantic region. As of December 31, 2016, the Company owned interests in 30 retail properties, of which 26 are operating properties and four are development or redevelopment properties. As of December 31, 2016, the Company’s 26 operating properties included 22 shopping malls and four other retail properties, had a total of 21.7 million square feet and were located in nine states.
Receive News & Ratings for Agree Realty Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Agree Realty and related companies with MarketBeat.com's FREE daily email newsletter.