Reviewing Agree Realty (NYSE:ADC) and Region Group (OTCMKTS:SCPAF)

Agree Realty (NYSE:ADC) and Region Group (OTCMKTS:SCPAF) are both real estate companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Agree Realty and Region Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agree Realty	0	4	11	1	2.81
Region Group	0	0	0	0	0.00

Agree Realty presently has a consensus target price of $83.94, indicating a potential upside of 10.98%. Given Agree Realty’s stronger consensus rating and higher possible upside, research analysts clearly believe Agree Realty is more favorable than Region Group.

Dividends

Agree Realty pays an annual dividend of $3.20 per share and has a dividend yield of 4.2%. Region Group pays an annual dividend of $0.11 per share and has a dividend yield of 7.1%. 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. Region Group pays out 63.6% of its earnings in the form of a dividend. Agree Realty has increased its dividend for 1 consecutive years. Region Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Agree Realty	28.84%	3.90%	2.36%
Region Group	N/A	N/A	N/A

Insider & Institutional Ownership

97.8% of Agree Realty shares are held by institutional investors. Comparatively, 31.7% of Region Group shares are held by institutional investors. 1.8% of Agree Realty shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Agree Realty and Region Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agree Realty	$718.40 million	13.10	$204.35 million	$1.86	40.66
Region Group	N/A	N/A	N/A	$0.17	8.96

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

Summary

Agree Realty beats Region Group on 13 of the 15 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 Region Group

Region Group (RGN) includes two internally managed real estate investment trusts owning a portfolio of convenience-based retail properties located across Australia. Region invests in retail properties predominantly anchored by non-discretionary retailers, with long leases to tenants such as Woolworths Limited, Coles Limited and companies in the Wesfarmers Limited group. Region Group comprises two registered managed investment schemes, Region Management Trust (ARSN 160 612 626) and Region Retail Trust (ARSN 160 612 788). The security in each Trust are stapled to form the stapled listed vehicle, Region Group (ASX: RGN), formerly known as SCA Property Group (ASX: SCP).