Analyzing Agree Realty (NYSE:ADC) & Brixmor Property Group (NYSE:BRX)

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

Insider and Institutional Ownership

98.4% of Brixmor Property Group shares are owned by institutional investors. Comparatively, 97.8% of Agree Realty shares are owned by institutional investors. 0.9% of Brixmor Property Group shares are owned by insiders. Comparatively, 1.8% of Agree Realty shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Brixmor Property Group has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Agree Realty has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Earnings and Valuation

This table compares Brixmor Property Group and Agree Realty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brixmor Property Group	$1.37 billion	6.79	$386.23 million	$1.37	22.16
Agree Realty	$718.40 million	12.72	$204.35 million	$1.94	36.20

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

Analyst Ratings

This is a summary of recent ratings and target prices for Brixmor Property Group and Agree Realty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brixmor Property Group	0	3	9	2	2.93
Agree Realty	0	6	10	1	2.71

Brixmor Property Group presently has a consensus target price of $32.95, suggesting a potential upside of 8.56%. Agree Realty has a consensus target price of $79.85, suggesting a potential upside of 13.71%. Given Agree Realty’s higher possible upside, analysts clearly believe Agree Realty is more favorable than Brixmor Property Group.

Profitability

This table compares Brixmor Property Group and Agree Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brixmor Property Group	29.96%	14.10%	4.70%
Agree Realty	29.75%	4.00%	2.43%

Dividends

Brixmor Property Group pays an annual dividend of $1.23 per share and has a dividend yield of 4.1%. Agree Realty pays an annual dividend of $3.25 per share and has a dividend yield of 4.6%. Brixmor Property Group pays out 89.8% 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 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. Brixmor Property Group has raised its dividend for 5 consecutive years and Agree Realty has raised its dividend for 1 consecutive years.

Summary

Brixmor Property Group beats Agree Realty on 11 of the 18 factors compared between the two stocks.

About Brixmor Property Group

Brixmor Property Group is a real estate investment trust (REIT) that owns, operates and redevelops open-air shopping centers across the United States. Its properties are primarily neighborhood and community centers anchored by grocery stores and serve local shopping and service needs. The company works with tenants and local communities to maintain and enhance its centers, which include retailers, restaurants and service providers. Brixmor was formed in 2011 and became a publicly traded company in 2013.

About Agree Realty

Agree Realty Corporation is a real estate investment trust (REIT) focused on acquiring, developing and managing net-leased properties, primarily occupied by retail businesses. Its portfolio includes freestanding stores and other properties leased to national and regional retailers. Under net leases, tenants generally assume responsibility for property expenses such as taxes, insurance and maintenance, while Agree Realty owns the real estate and collects rent. The company’s properties are located across the United States.