Urban Edge Properties (NYSE:UE) versus Agree Realty (NYSE:ADC) Financial Analysis

Agree Realty (NYSE:ADC) and Urban Edge Properties (NYSE:UE) are both mid-cap real estate companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Agree Realty and Urban Edge Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agree Realty	0	6	10	1	2.71
Urban Edge Properties	0	2	2	0	2.50

Agree Realty presently has a consensus price target of $79.85, indicating a potential upside of 14.33%. Urban Edge Properties has a consensus price target of $22.67, indicating a potential upside of 10.30%. Given Agree Realty’s stronger consensus rating and higher possible upside, analysts plainly believe Agree Realty is more favorable than Urban Edge Properties.

Dividends

Agree Realty pays an annual dividend of $3.25 per share and has a dividend yield of 4.7%. Urban Edge Properties pays an annual dividend of $0.84 per share and has a dividend yield of 4.1%. Agree Realty pays out 167.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urban Edge Properties pays out 101.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Agree Realty has raised its dividend for 1 consecutive years and Urban Edge Properties has raised its dividend for 2 consecutive years.

Institutional and Insider Ownership

97.8% of Agree Realty shares are held by institutional investors. Comparatively, 94.9% of Urban Edge Properties shares are held by institutional investors. 1.8% of Agree Realty shares are held by company insiders. Comparatively, 2.7% of Urban Edge Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Agree Realty and Urban Edge Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agree Realty	$810.28 million	11.21	$204.35 million	$1.94	36.00
Urban Edge Properties	$471.93 million	5.50	$93.54 million	$0.83	24.76

Agree Realty has higher revenue and earnings than Urban Edge Properties. Urban Edge Properties is trading at a lower price-to-earnings ratio than Agree Realty, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Agree Realty has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, Urban Edge Properties has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Profitability

This table compares Agree Realty and Urban Edge Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Agree Realty	29.75%	4.00%	2.43%
Urban Edge Properties	21.12%	7.53%	3.09%

Summary

Agree Realty beats Urban Edge Properties on 12 of the 18 factors compared between the two stocks.

About Agree Realty

Agree Realty Corporation is a publicly traded real estate investment trust that is RETHINKING RETAIL through the acquisition and development of properties net leased to industry-leading, omni-channel retail tenants. As of December 31, 2023, the Company owned and operated a portfolio of 2,135 properties, located in 49 states and containing approximately 44.2 million square feet of gross leasable area. The Company's common stock is listed on the New York Stock Exchange under the symbol "ADC".

About Urban Edge Properties

Urban Edge Properties is a NYSE listed real estate investment trust focused on owning, managing, acquiring, developing, and redeveloping retail real estate in urban communities, primarily in the Washington, D.C. to Boston corridor. Urban Edge owns 76 properties totaling 17.1 million square feet of gross leasable area.