Agree Realty vs Visa Which Is a Better Investment?

Agree Realty and Visa are two well-known companies in the stock market that have garnered attention from investors for different reasons. Agree Realty is a real estate investment trust (REIT) that focuses on acquiring and developing properties for retailers, while Visa is a leading global payments technology company. Both stocks have shown strong performance in recent years, attracting investors looking for stable returns and growth potential. In this comparison, we will analyze the key differences and similarities between Agree Realty and Visa stocks to help investors make informed decisions.

Agree Realty or Visa?

When comparing Agree Realty and Visa, 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 Visa.

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 Visa has a dividend yield of 0.5%. 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, Visa reports a 5-year dividend growth of 16.27% year and a payout ratio of 21.36%.

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 Visa's P/E ratio at 31.48. 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 Visa's P/B ratio is 15.88.

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 Visa's is 0.73%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Agree Realty's ROE at 3.65% and Visa's ROE at 49.64%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $75.46 for Agree Realty and $309.30 for Visa. Over the past year, Agree Realty's prices ranged from $54.28 to $77.47, with a yearly change of 42.72%. Visa's prices fluctuated between $244.11 and $312.39, with a yearly change of 27.97%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.