Agree Realty vs Shopify Which Outperforms?

Agree Realty Corporation and Shopify Inc. are two companies operating in vastly different industries. Agree Realty is a real estate investment trust focused on owning and developing retail properties, while Shopify is an e-commerce platform that enables businesses to sell products online. Despite their differences, both companies have seen significant success in their respective sectors. Investors may consider the potential for growth and stability when deciding between Agree Realty and Shopify stocks.

Agree Realty or Shopify?

When comparing Agree Realty and Shopify, 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 Shopify.

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 3.93%, while Shopify has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Agree Realty reports a 5-year dividend growth of 6.26% year and a payout ratio of 161.58%. On the other hand, Shopify reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 40.18 and Shopify's P/E ratio at 91.11. 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 1.44 while Shopify's P/B ratio is 12.65.

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 Shopify's is 4.42%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Agree Realty's ROE at 3.65% and Shopify's ROE at 14.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $75.46 for Agree Realty and $88.71 for Shopify. Over the past year, Agree Realty's prices ranged from $54.28 to $77.47, with a yearly change of 42.72%. Shopify's prices fluctuated between $48.56 and $92.16, with a yearly change of 89.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.