Contrasting Agree Realty (NYSE:ADC) and EPR Properties (NYSE:EPR)

EPR Properties (NYSE:EPR) and Agree Realty (NYSE:ADC) are both mid-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Dividends

EPR Properties pays an annual dividend of $3.54 per share and has a dividend yield of 6.0%. Agree Realty pays an annual dividend of $3.07 per share and has a dividend yield of 4.3%. EPR Properties pays out 217.2% 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 pays out 173.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EPR Properties has increased its dividend for 1 consecutive years and Agree Realty has increased its dividend for 1 consecutive years.

Earnings and Valuation

This table compares EPR Properties and Agree Realty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EPR Properties	$698.07 million	6.47	$146.07 million	$1.63	36.44
Agree Realty	$617.09 million	12.82	$189.20 million	$1.77	40.64

Agree Realty has lower revenue, but higher earnings than EPR Properties. EPR 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

EPR Properties has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Agree Realty has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for EPR Properties and Agree Realty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EPR Properties	1	3	3	1	2.50
Agree Realty	0	6	9	1	2.69

EPR Properties currently has a consensus price target of $57.29, indicating a potential downside of 3.56%. Agree Realty has a consensus price target of $80.25, indicating a potential upside of 11.58%. Given Agree Realty’s stronger consensus rating and higher possible upside, analysts plainly believe Agree Realty is more favorable than EPR Properties.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EPR Properties	21.13%	6.30%	2.65%
Agree Realty	30.05%	3.66%	2.29%

Insider & Institutional Ownership

74.7% of EPR Properties shares are owned by institutional investors. Comparatively, 97.8% of Agree Realty shares are owned by institutional investors. 2.3% of EPR Properties shares are owned by company insiders. Comparatively, 1.8% of Agree Realty shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Agree Realty beats EPR Properties on 10 of the 16 factors compared between the two stocks.

About EPR Properties

EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues that create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately $5.7 billion (after accumulated depreciation of approximately $1.4 billion) across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.

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".