Getty Realty Corporation (NYSE: GTY) and Agree Realty Corporation (NYSE:ADC) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

52.1% of Getty Realty Corporation shares are owned by institutional investors. Comparatively, 85.3% of Agree Realty Corporation shares are owned by institutional investors. 22.3% of Getty Realty Corporation shares are owned by company insiders. Comparatively, 4.4% of Agree Realty Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Getty Realty Corporation pays an annual dividend of $1.12 per share and has a dividend yield of 3.8%. Agree Realty Corporation pays an annual dividend of $2.02 per share and has a dividend yield of 4.1%. Getty Realty Corporation pays out 92.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Getty Realty Corporation has increased its dividend for 4 consecutive years and Agree Realty Corporation has increased its dividend for 4 consecutive years. Agree Realty Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Getty Realty Corporation and Agree Realty Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Getty Realty Corporation $114.91 million 10.12 $78.24 million $1.21 24.39
Agree Realty Corporation $104.10 million 13.39 $84.76 million $2.23 22.00

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Getty Realty Corporation and Agree Realty Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Getty Realty Corporation 1 0 2 0 2.33
Agree Realty Corporation 0 4 5 0 2.56

Getty Realty Corporation currently has a consensus price target of $27.33, suggesting a potential downside of 7.38%. Agree Realty Corporation has a consensus price target of $51.71, suggesting a potential upside of 5.41%. Given Agree Realty Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Agree Realty Corporation is more favorable than Getty Realty Corporation.

Profitability

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

Net Margins Return on Equity Return on Assets
Getty Realty Corporation 36.50% 10.28% 5.06%
Agree Realty Corporation 54.22% 8.23% 4.91%

Volatility & Risk

Getty Realty Corporation has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Agree Realty Corporation has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Summary

Agree Realty Corporation beats Getty Realty Corporation on 11 of the 16 factors compared between the two stocks.

Getty Realty Corporation Company Profile

Getty Realty Corp. is a real estate investment trust (REIT). The Company specializes in the ownership, leasing and financing of convenience store and gasoline station properties. As of June 30, 2017, the Company’s 825 properties were located in 26 states across the United States and Washington, District of Columbia. Its properties are operated under a range of brands, including 76, Aloha, BP, Citgo, Conoco, Exxon, Getty, Mobil, RaceTrac, Shell and Valero. The Company owns the Getty name in connection with its real estate and the petroleum marketing business in the United States. As of June 30, 2017, the Company had owned 738 properties and leased 87 properties from third-party landlords. Its typical property is used as a convenience store and gasoline station. Its properties are concentrated in the Northeast and Mid-Atlantic regions.

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.

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