Kimco Realty Corporation (NYSE: KIM) and Agree Realty (NYSE:ADC) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Dividends

Kimco Realty Corporation pays an annual dividend of $1.08 per share and has a dividend yield of 5.6%. Agree Realty pays an annual dividend of $2.02 per share and has a dividend yield of 4.1%. Kimco Realty Corporation pays out 220.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Kimco Realty Corporation has increased its dividend for 4 consecutive years and Agree Realty has increased its dividend for 7 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Kimco Realty Corporation and Agree Realty, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kimco Realty Corporation 0 8 6 0 2.43
Agree Realty 0 4 6 0 2.60

Kimco Realty Corporation currently has a consensus target price of $25.32, indicating a potential upside of 32.01%. Agree Realty has a consensus target price of $51.88, indicating a potential upside of 4.33%. Given Kimco Realty Corporation’s higher possible upside, equities analysts plainly believe Kimco Realty Corporation is more favorable than Agree Realty.

Risk and Volatility

Kimco Realty Corporation has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Agree Realty has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Institutional and Insider Ownership

89.1% of Kimco Realty Corporation shares are owned by institutional investors. Comparatively, 85.3% of Agree Realty shares are owned by institutional investors. 2.9% of Kimco Realty Corporation shares are owned by company insiders. Comparatively, 4.4% of Agree Realty shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Kimco Realty Corporation 21.77% 4.68% 2.23%
Agree Realty 53.66% 8.07% 4.94%

Earnings & Valuation

This table compares Kimco Realty Corporation and Agree Realty’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Kimco Realty Corporation $1.17 billion 6.98 $764.78 million $0.49 39.14
Agree Realty $104.10 million 13.57 $84.76 million $2.23 22.30

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

Summary

Agree Realty beats Kimco Realty Corporation on 9 of the 16 factors compared between the two stocks.

About Kimco Realty Corporation

Kimco Realty Corporation is a self-administered real estate investment trust. The Company is engaged in the ownership, management, development and operation of open-air shopping centers, which are anchored generally by discount department stores, grocery stores or drugstores. As of June 30, 2017, the Company had interests in 510 shopping center properties, including 84 million square feet of gross leasable area (GLA), located in 32 states, Puerto Rico and Canada. As of March 31, 2017, the Company had 380 other property interests, primarily through the Company’s preferred equity investments and other real estate investments, totaling 5.8 million square feet of GLA.

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.

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