Avant vs Agree Realty Which Is a Better Investment?

Avant and Agree Realty are two companies in the real estate sector that are often compared by investors looking for opportunities in the market. Avant is known for its innovative approach to property development, while Agree Realty focuses on acquiring and managing retail properties. Both companies have shown strong performance in recent years, attracting attention from both growth and income-oriented investors. Understanding the key differences between Avant and Agree Realty stocks can help investors make informed decisions about where to allocate their capital in the dynamic real estate market.

Avant or Agree Realty?

When comparing Avant 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 Avant 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. Avant has a dividend yield of 0.98%, 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. Avant reports a 5-year dividend growth of 0.00% year and a payout ratio of 23.74%. 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 Avant P/E ratio at 23.69 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. Avant P/B ratio is 5.49 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, Avant has seen a 5-year revenue growth of 0.75%, while Agree Realty's is 0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Avant's ROE at 23.12% 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 ¥1922.00 for Avant and $74.08 for Agree Realty. Over the past year, Avant's prices ranged from ¥1199.00 to ¥2369.00, with a yearly change of 97.58%. 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.