Crombie Real Estate Investment Trust (OTCMKTS:CROMF) versus Agree Realty (NYSE:ADC) Critical Survey

Crombie Real Estate Investment Trust (OTCMKTS:CROMF) and Agree Realty (NYSE:ADC) are both real estate companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Analyst Recommendations

This is a summary of current recommendations for Crombie Real Estate Investment Trust and Agree Realty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crombie Real Estate Investment Trust	0	0	0	0	0.00
Agree Realty	0	4	11	1	2.81

Agree Realty has a consensus price target of $83.94, indicating a potential upside of 13.25%. Given Agree Realty’s stronger consensus rating and higher possible upside, analysts clearly believe Agree Realty is more favorable than Crombie Real Estate Investment Trust.

Dividends

Crombie Real Estate Investment Trust pays an annual dividend of $0.89 per share and has a dividend yield of 7.4%. Agree Realty pays an annual dividend of $3.20 per share and has a dividend yield of 4.3%. Crombie Real Estate Investment Trust pays out -199.9% of its earnings in the form of a dividend. Agree Realty pays out 172.0% 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 increased its dividend for 1 consecutive years. Crombie Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Crombie Real Estate Investment Trust and Agree Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crombie Real Estate Investment Trust	N/A	N/A	N/A
Agree Realty	28.84%	3.90%	2.36%

Valuation and Earnings

This table compares Crombie Real Estate Investment Trust and Agree Realty”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crombie Real Estate Investment Trust	N/A	N/A	N/A	($0.44)	-27.06
Agree Realty	$718.40 million	12.83	$204.35 million	$1.86	39.85

Agree Realty has higher revenue and earnings than Crombie Real Estate Investment Trust. Crombie Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Agree Realty, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

31.8% of Crombie Real Estate Investment Trust shares are held by institutional investors. Comparatively, 97.8% of Agree Realty shares are held by institutional investors. 1.8% of Agree Realty shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Agree Realty beats Crombie Real Estate Investment Trust on 13 of the 15 factors compared between the two stocks.

About Crombie Real Estate Investment Trust

Crombie invests in real estate that enriches local communities and enables long-term sustainable growth. As one of the country's leading owners, operators, and developers of quality assets, Crombie's portfolio primarily includes grocery-anchored retail, retail-related industrial, and mixed-use residential properties. As at December 31, 2023, our portfolio contains 304 properties comprising approximately 19.2 million square feet, inclusive of joint ventures at Crombie's share, and a significant pipeline of future development projects.

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".