Affirm vs Agree Realty Which Is a Smarter Choice?

Affirm and Agree Realty are two prominent players in the real estate industry, both offering unique investment opportunities for potential investors. Affirm Realty focuses on acquiring and developing retail properties, while Agree Realty focuses on acquiring and developing single tenant properties. Both companies have shown strong performance and growth potential in recent years. Investors looking to diversify their real estate portfolios may find value in comparing and considering these two stocks for their investment strategies.

Affirm or Agree Realty?

When comparing Affirm and Agree Realty, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Affirm and Agree Realty.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Affirm has a dividend yield of -%, while Agree Realty has a dividend yield of 4.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Affirm reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Agree Realty reports a 5-year dividend growth of 6.25% year and a payout ratio of 161.58%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Affirm P/E ratio at -51.27 and Agree Realty's P/E ratio at 39.50. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Affirm P/B ratio is 8.07 while Agree Realty's P/B ratio is 1.42.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Affirm has seen a 5-year revenue growth of 4.24%, while Agree Realty's is 0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Affirm's ROE at -16.49% and Agree Realty's ROE at 3.65%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $68.52 for Affirm and $74.08 for Agree Realty. Over the past year, Affirm's prices ranged from $22.25 to $72.82, with a yearly change of 227.28%. Agree Realty's prices fluctuated between $54.28 and $78.39, with a yearly change of 44.42%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.