Agree Realty Corporation (NYSE: ADC) and Urban Edge Properties (NYSE:UE) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings for Agree Realty Corporation and Urban Edge Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Agree Realty Corporation 0 4 6 0 2.60
Urban Edge Properties 1 0 0 0 1.00

Agree Realty Corporation currently has a consensus price target of $51.63, suggesting a potential upside of 5.27%. Urban Edge Properties has a consensus price target of $25.00, suggesting a potential upside of 1.67%. Given Agree Realty Corporation’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Agree Realty Corporation is more favorable than Urban Edge Properties.

Institutional & Insider Ownership

86.9% of Agree Realty Corporation shares are owned by institutional investors. Comparatively, 87.2% of Urban Edge Properties shares are owned by institutional investors. 4.4% of Agree Realty Corporation shares are owned by company insiders. Comparatively, 4.7% of Urban Edge Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Agree Realty Corporation pays an annual dividend of $2.02 per share and has a dividend yield of 4.1%. Urban Edge Properties pays an annual dividend of $0.88 per share and has a dividend yield of 3.6%. 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. Urban Edge Properties pays out 87.1% 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 Corporation has raised its dividend for 4 consecutive years. Agree Realty Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Agree Realty Corporation has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Urban Edge Properties has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Profitability

This table compares Agree Realty Corporation and Urban Edge Properties’ 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%
Urban Edge Properties 27.04% 16.72% 4.87%

Valuation & Earnings

This table compares Agree Realty Corporation and Urban Edge Properties’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Agree Realty Corporation $104.10 million 13.38 $84.76 million $2.23 21.99
Urban Edge Properties $379.02 million 6.98 $230.14 million $1.01 24.35

Urban Edge Properties has higher revenue and earnings than Agree Realty Corporation. Agree Realty Corporation is trading at a lower price-to-earnings ratio than Urban Edge Properties, indicating that it is currently the more affordable of the two stocks.

Summary

Agree Realty Corporation beats Urban Edge Properties on 9 of the 16 factors compared between the two stocks.

Agree Realty Corporation 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.

Urban Edge Properties Company Profile

Urban Edge Properties is a real estate investment trust. The Company is focused on managing, developing, redeveloping and acquiring retail real estate in urban communities, in the New York metropolitan region. Urban Edge Properties LP (UELP or the Operating Partnership) serves as its partnership subsidiary and owns, through affiliates, all of its real estate properties and other assets. As of December 31, 2016, its portfolio consisted of 79 shopping centers, three malls and a warehouse park adjacent to one of its centers totaling 14.8 million square feet. As of December 31, 2016, it leased 19 properties under ground and/or building leases. As of December 31, 2016, it had approximately 1,200 leases. Its shopping centers and malls are located at California, Connecticut, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, South Carolina, Virginia and Puerto Rico. Its shopping centers and malls include Signal Hill, Vallejo, Walnut Creek, Newington and others.

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