Comparing Getty Realty (NYSE:GTY) & Agree Realty (NYSE:ADC)

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

Dividends

Agree Realty pays an annual dividend of $3.20 per share and has a dividend yield of 4.7%. Getty Realty pays an annual dividend of $1.94 per share and has a dividend yield of 6.8%. Agree Realty pays out 164.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Getty Realty pays out 118.3% 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 Getty Realty has raised its dividend for 1 consecutive years. Getty Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Agree Realty and Getty Realty”s gross 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	12.40	$204.35 million	$1.94	35.30
Getty Realty	$221.73 million	8.65	$79.19 million	$1.64	17.42

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

Insider and Institutional Ownership

97.8% of Agree Realty shares are held by institutional investors. Comparatively, 85.1% of Getty Realty shares are held by institutional investors. 1.8% of Agree Realty shares are held by company insiders. Comparatively, 7.5% of Getty Realty shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Agree Realty has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, Getty Realty has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Profitability

This table compares Agree Realty and Getty Realty’s 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%
Getty Realty	42.37%	8.93%	4.42%

Analyst Recommendations

This is a summary of current recommendations and price targets for Agree Realty and Getty Realty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agree Realty	0	6	10	1	2.71
Getty Realty	0	4	4	1	2.67

Agree Realty currently has a consensus price target of $79.85, indicating a potential upside of 16.60%. Getty Realty has a consensus price target of $36.57, indicating a potential upside of 28.01%. Given Getty Realty’s higher probable upside, analysts clearly believe Getty Realty is more favorable than Agree Realty.

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 Getty Realty

Getty Realty Corp. is a publicly traded, net lease REIT specializing in the acquisition, financing and development of convenience, automotive and other single tenant retail real estate. As of December 31, 2023, the Company’s portfolio included 1,093 freestanding properties located in 40 states across the United States and Washington, D.C.