Head to Head Contrast: Agree Realty Corporation (ADC) vs. Cedar Realty Trust (CDR)

Agree Realty Corporation (NYSE: ADC) and Cedar Realty Trust (NYSE:CDR) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, valuation, dividends, risk and earnings.

Risk & Volatility

Agree Realty Corporation has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Cedar Realty Trust has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Valuation & Earnings

This table compares Agree Realty Corporation and Cedar Realty Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Agree Realty Corporation $104.10 million 13.52 $84.76 million $2.23 22.22
Cedar Realty Trust $147.44 million 3.18 $81.98 million ($0.06) -94.98

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

Dividends

Agree Realty Corporation pays an annual dividend of $2.02 per share and has a dividend yield of 4.1%. Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.5%. Agree Realty Corporation 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. Cedar Realty Trust pays out -333.3% of its earnings in the form of a dividend. Cedar Realty Trust has raised its dividend for 4 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and price targets for Agree Realty Corporation and Cedar Realty Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Agree Realty Corporation 0 4 6 0 2.60
Cedar Realty Trust 1 2 3 0 2.33

Agree Realty Corporation currently has a consensus price target of $51.88, indicating a potential upside of 4.67%. Cedar Realty Trust has a consensus price target of $6.25, indicating a potential upside of 9.65%. Given Cedar Realty Trust’s higher probable upside, analysts clearly believe Cedar Realty Trust is more favorable than Agree Realty Corporation.

Profitability

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

Net Margins Return on Equity Return on Assets
Agree Realty Corporation 54.22% 8.23% 4.91%
Cedar Realty Trust 6.58% 2.49% 0.77%

Institutional and Insider Ownership

85.3% of Agree Realty Corporation shares are held by institutional investors. Comparatively, 92.2% of Cedar Realty Trust shares are held by institutional investors. 4.4% of Agree Realty Corporation shares are held by insiders. Comparatively, 4.5% of Cedar Realty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Agree Realty Corporation beats Cedar Realty Trust on 10 of the 17 factors compared between the two stocks.

Agree Realty Corporation Company Profile

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.

Cedar Realty Trust Company Profile

Cedar Realty Trust, Inc. is a real estate investment trust (REIT). The Company focuses on ownership and operation of grocery-anchored shopping centers straddling the Washington District of Columbia (DC) to Boston corridor. As of December 31, 2016, the Company owned and managed a portfolio of 61 operating properties (excluding properties held for sale) totaling approximately 9.1 million square feet of gross leasable area (GLA). The Company focuses its investment activities on grocery-anchored shopping centers. The Company’s properties portfolio comprises 26 properties in Pennsylvania, eight properties in Massachusetts, seven properties in Connecticut, seven properties in Maryland / Washington, D.C, eight properties in Virginia, four properties in New Jersey and one property in New York. The Company’s 106 are going to expire in the year 2017. The Company conducts all of its businesses through the Cedar Realty Trust Partnership L.P. (the Operating Partnership).

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