Agree Realty vs Realty Income Which Is More Promising?

Agree Realty Corporation and Realty Income Corporation are both well-established real estate investment trusts (REITs) specializing in the ownership and management of commercial properties such as retail stores and shopping centers. Agree Realty focuses on properties leased to national retailers, while Realty Income focuses on a diversified portfolio of tenants. Investors looking for stability and consistent dividends may favor Realty Income, while those seeking growth potential may prefer Agree Realty. Both stocks offer unique opportunities for those interested in the commercial real estate sector.

Agree Realty or Realty Income?

When comparing Agree Realty and Realty Income, 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 Agree Realty and Realty Income.

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. Agree Realty has a dividend yield of 4.05%, while Realty Income has a dividend yield of 5.6%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Agree Realty reports a 5-year dividend growth of 6.25% year and a payout ratio of 161.58%. On the other hand, Realty Income reports a 5-year dividend growth of 3.00% year and a payout ratio of 291.48%.

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 Agree Realty P/E ratio at 39.11 and Realty Income's P/E ratio at 55.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Agree Realty P/B ratio is 1.40 while Realty Income's P/B ratio is 1.26.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Agree Realty has seen a 5-year revenue growth of 0.22%, while Realty Income's is 0.28%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Agree Realty's ROE at 3.65% and Realty Income's ROE at 2.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $73.61 for Agree Realty and $55.69 for Realty Income. Over the past year, Agree Realty's prices ranged from $54.28 to $78.39, with a yearly change of 44.42%. Realty Income's prices fluctuated between $50.65 and $64.88, with a yearly change of 28.09%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.