Head to Head Comparison: Agree Realty (ADC) versus Brixmor Property Group (BRX)

Agree Realty (NYSE: ADC) and Brixmor Property Group (NYSE:BRX) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.

Profitability

This table compares Agree Realty and Brixmor Property Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Agree Realty 49.26% 7.27% 4.42%
Brixmor Property Group 25.14% 11.08% 3.48%

Dividends

Agree Realty pays an annual dividend of $2.08 per share and has a dividend yield of 4.2%. Brixmor Property Group pays an annual dividend of $1.10 per share and has a dividend yield of 6.4%. Agree Realty pays out 102.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brixmor Property Group pays out 103.8% 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 2 consecutive years and Brixmor Property Group has raised its dividend for 5 consecutive years. Brixmor Property Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

87.2% of Agree Realty shares are owned by institutional investors. Comparatively, 98.5% of Brixmor Property Group shares are owned by institutional investors. 4.4% of Agree Realty shares are owned by insiders. Comparatively, 0.3% of Brixmor Property Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Agree Realty has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Brixmor Property Group has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Valuation & Earnings

This table compares Agree Realty and Brixmor Property Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Agree Realty $91.53 million 15.88 $45.11 million $2.04 24.38
Brixmor Property Group $1.28 billion 4.09 $275.62 million $1.06 16.15

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

Analyst Ratings

This is a summary of recent ratings for Agree Realty and Brixmor Property Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Agree Realty 0 2 7 0 2.78
Brixmor Property Group 0 7 2 0 2.22

Agree Realty presently has a consensus price target of $54.63, indicating a potential upside of 9.84%. Brixmor Property Group has a consensus price target of $20.57, indicating a potential upside of 20.16%. Given Brixmor Property Group’s higher possible upside, analysts clearly believe Brixmor Property Group is more favorable than Agree Realty.

Summary

Agree Realty beats Brixmor Property Group on 10 of the 17 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.

Brixmor Property Group Company Profile

Brixmor Property Group Inc. is an internally managed real estate investment trust. The Company conducts its operations primarily through Brixmor Operating Partnership LP and subsidiaries (collectively, the Operating Partnership). As of December 31, 2016, it owned interests in 512 shopping centers (the Portfolio) with approximately 86 million square feet of gross leasable area (GLA), including 511 shopping centers and one shopping center held through an unconsolidated joint venture. With an average shopping center size of 167,982 square feet as of December 31, 2016, the Company’s portfolio consisted predominantly of community and neighborhood shopping centers. As of December 31, 2016, the Company’s properties were located in various states of the United States, such as Texas, Florida, California, New York, Illinois, Georgia, New Jersey, Ohio, North Carolina, Michigan, Connecticut, Tennessee, Kentucky, Colorado, Arizona, Delaware, West Virginia, Vermont, Maine, Oklahoma and New Mexico.

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