Analyzing FrontView REIT (NYSE:FVR) and Agree Realty (NYSE:ADC)

FrontView REIT (NYSE:FVR) and Agree Realty (NYSE:ADC) are both real estate companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Volatility and Risk

FrontView REIT has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Agree Realty has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.

Dividends

FrontView REIT pays an annual dividend of $0.86 per share and has a dividend yield of 4.3%. Agree Realty pays an annual dividend of $3.20 per share and has a dividend yield of 4.3%. FrontView REIT pays out 2,866.7% 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 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. Agree Realty has raised its dividend for 1 consecutive years.

Earnings & Valuation

This table compares FrontView REIT and Agree Realty”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FrontView REIT	$67.11 million	6.70	-$3.83 million	$0.03	661.97
Agree Realty	$779.62 million	11.98	$204.35 million	$1.86	40.37

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

Analyst Ratings

This is a summary of current recommendations for FrontView REIT and Agree Realty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FrontView REIT	1	3	7	2	2.77
Agree Realty	0	4	11	1	2.81

FrontView REIT presently has a consensus price target of $21.94, suggesting a potential upside of 10.50%. Agree Realty has a consensus price target of $83.94, suggesting a potential upside of 11.79%. Given Agree Realty’s stronger consensus rating and higher possible upside, analysts clearly believe Agree Realty is more favorable than FrontView REIT.

Institutional and Insider Ownership

97.8% of Agree Realty shares are owned by institutional investors. 9.6% of FrontView REIT shares are owned by insiders. Comparatively, 1.8% of Agree Realty shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FrontView REIT	2.10%	0.29%	0.17%
Agree Realty	28.84%	3.90%	2.36%

Summary

Agree Realty beats FrontView REIT on 13 of the 18 factors compared between the two stocks.

About FrontView REIT

FrontView REIT specializes in real estate investing.

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".