Head-To-Head Survey: Urban Edge Properties (NYSE:UE) vs. Agree Realty (NYSE:ADC)

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Agree Realty and Urban Edge Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agree Realty	0	6	10	1	2.71
Urban Edge Properties	0	2	2	0	2.50

Agree Realty presently has a consensus target price of $79.85, suggesting a potential upside of 15.51%. Urban Edge Properties has a consensus target price of $23.00, suggesting a potential upside of 9.55%. Given Agree Realty’s stronger consensus rating and higher probable upside, equities analysts plainly believe Agree Realty is more favorable than Urban Edge Properties.

Profitability

This table compares Agree Realty and Urban Edge Properties’ 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%
Urban Edge Properties	21.12%	7.53%	3.09%

Valuation and Earnings

This table compares Agree Realty and Urban Edge Properties”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	12.52	$204.35 million	$1.94	35.64
Urban Edge Properties	$471.93 million	5.62	$93.54 million	$0.83	25.30

Agree Realty has higher revenue and earnings than Urban Edge Properties. Urban Edge 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.

Dividends

Agree Realty pays an annual dividend of $3.25 per share and has a dividend yield of 4.7%. Urban Edge Properties pays an annual dividend of $0.84 per share and has a dividend yield of 4.0%. Agree Realty pays out 167.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urban Edge Properties pays out 101.2% 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 has raised its dividend for 1 consecutive years and Urban Edge Properties has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

97.8% of Agree Realty shares are owned by institutional investors. Comparatively, 94.9% of Urban Edge Properties shares are owned by institutional investors. 1.8% of Agree Realty shares are owned by company insiders. Comparatively, 2.7% of Urban Edge Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Agree Realty has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Urban Edge Properties has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Summary

Agree Realty beats Urban Edge Properties on 12 of the 18 factors compared between the two stocks.

About Agree Realty

Agree Realty Corporation is a real estate investment trust (REIT) focused on acquiring, developing and managing net-leased properties, primarily occupied by retail businesses. Its portfolio includes freestanding stores and other properties leased to national and regional retailers. Under net leases, tenants generally assume responsibility for property expenses such as taxes, insurance and maintenance, while Agree Realty owns the real estate and collects rent. The company’s properties are located across the United States.

About Urban Edge Properties

Urban Edge Properties is a real estate investment trust that owns, manages, leases and redevelops retail properties. Its portfolio includes shopping centers and other retail destinations, with many properties anchored by grocery stores and serving densely populated communities. The company focuses on the Northeast and Mid-Atlantic, including the New York metropolitan area and markets around Washington, D.C. Its work includes leasing space to retailers and investing in property improvements and redevelopment.