Analyzing Agree Realty (ADC) and Cedar Realty Trust (CDR)

Agree Realty (NYSE: ADC) and Cedar Realty Trust (NYSE:CDR) are both small-cap financials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Profitability

This table compares Agree Realty and Cedar Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Agree Realty 53.66% 8.07% 4.94%
Cedar Realty Trust 6.58% 2.49% 0.77%

Dividends

Agree Realty pays an annual dividend of $2.02 per share and has a dividend yield of 4.1%. Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.6%. Agree Realty pays out 90.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cedar Realty Trust pays out -333.3% of its earnings in the form of a dividend. Cedar Realty Trust has increased its dividend for 4 consecutive years.

Earnings & Valuation

This table compares Agree Realty and Cedar Realty Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Agree Realty $104.10 million 13.51 $84.76 million $2.23 22.21
Cedar Realty Trust $147.44 million 3.07 $81.98 million ($0.06) -91.65

Agree Realty has higher revenue, but lower earnings than Cedar Realty Trust. Cedar Realty 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.

Volatility and Risk

Agree Realty has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Cedar Realty Trust has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Insider and Institutional Ownership

85.3% of Agree Realty shares are owned by institutional investors. Comparatively, 92.2% of Cedar Realty Trust shares are owned by institutional investors. 4.4% of Agree Realty shares are owned by company insiders. Comparatively, 4.5% of Cedar Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Agree Realty and Cedar Realty Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Agree Realty 0 4 5 0 2.56
Cedar Realty Trust 1 2 3 0 2.33

Agree Realty presently has a consensus target price of $51.71, suggesting a potential upside of 4.43%. Cedar Realty Trust has a consensus target price of $6.25, suggesting a potential upside of 13.64%. Given Cedar Realty Trust’s higher probable upside, analysts clearly believe Cedar Realty Trust is more favorable than Agree Realty.

Summary

Agree Realty beats Cedar Realty Trust on 9 of the 16 factors compared between the two stocks.

About Agree Realty

Agree Realty Corporation (Agree Realty) is an integrated real estate investment trust (REIT) primarily focused on the ownership, acquisition, development and management of retail properties. The Company operates through Agree Limited Partnership (the Operating Partnership). As of December 31, 2016, its portfolio consisted of 366 properties located in 43 states and totaling approximately seven million square feet of gross leasable area (GLA). As of December 31, 2016, its portfolio included 363 net lease properties, which contributed approximately 98.1% of annualized base rent, and three community shopping centers. The Company’s business objective is to generate consistent shareholder returns by investing in and actively managing a diversified portfolio of retail properties net leased to industry tenants. Its community shopping centers include Capital Plaza, Frankfort; Central Michigan Commons, Mount Pleasant, and West Frankfort Plaza, West Frankfort.

About Cedar Realty Trust

Cedar Realty Trust, Inc. is a real estate investment trust (REIT). The Company focuses on ownership and operation of grocery-anchored shopping centers straddling the Washington District of Columbia (DC) to Boston corridor. As of December 31, 2016, the Company owned and managed a portfolio of 61 operating properties (excluding properties held for sale) totaling approximately 9.1 million square feet of gross leasable area (GLA). The Company focuses its investment activities on grocery-anchored shopping centers. The Company’s properties portfolio comprises 26 properties in Pennsylvania, eight properties in Massachusetts, seven properties in Connecticut, seven properties in Maryland / Washington, D.C, eight properties in Virginia, four properties in New Jersey and one property in New York. The Company’s 106 are going to expire in the year 2017. The Company conducts all of its businesses through the Cedar Realty Trust Partnership L.P. (the Operating Partnership).

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