Agree Realty (NYSE:ADC – Get Free Report) and Urban Edge Properties (NYSE:UE – Get Free Report) are both mid-cap real estate companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.
Insider & Institutional Ownership
97.8% of Agree Realty shares are owned by institutional investors. Comparatively, 94.9% of Urban Edge Properties shares are owned by institutional investors. 1.8% of Agree Realty shares are owned by insiders. Comparatively, 2.7% of Urban Edge Properties shares are owned by 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 summary of current ratings 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 currently has a consensus price target of $79.85, suggesting a potential upside of 14.33%. Urban Edge Properties has a consensus price target of $22.67, suggesting a potential upside of 10.30%. Given Agree Realty’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Agree Realty is more favorable than Urban Edge Properties.
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% |
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.
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, suggesting that its share price is 60% less volatile than the S&P 500. Comparatively, Urban Edge Properties has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.
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.
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