Agree Realty (NYSE:ADC) and Apartment Investment and Management (NYSE:AIV) are both mid-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Earnings & Valuation

This table compares Agree Realty and Apartment Investment and Management’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Agree Realty $148.20 million 21.86 $58.17 million $2.85 26.80
Apartment Investment and Management $914.29 million 8.81 $474.08 million $2.50 21.64

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

Profitability

This table compares Agree Realty and Apartment Investment and Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Agree Realty 40.18% 5.16% 3.14%
Apartment Investment and Management 51.85% 25.88% 7.32%

Dividends

Agree Realty pays an annual dividend of $2.34 per share and has a dividend yield of 3.1%. Apartment Investment and Management pays an annual dividend of $1.56 per share and has a dividend yield of 2.9%. Agree Realty pays out 82.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apartment Investment and Management pays out 62.4% of its earnings in the form of a dividend. Agree Realty has increased its dividend for 7 consecutive years and Apartment Investment and Management has increased its dividend for 8 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations for Agree Realty and Apartment Investment and Management, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Agree Realty 0 1 3 1 3.00
Apartment Investment and Management 0 4 3 0 2.43

Agree Realty currently has a consensus price target of $80.20, indicating a potential upside of 4.99%. Apartment Investment and Management has a consensus price target of $55.60, indicating a potential upside of 2.75%. Given Agree Realty’s stronger consensus rating and higher possible upside, equities analysts clearly believe Agree Realty is more favorable than Apartment Investment and Management.

Volatility and Risk

Agree Realty has a beta of -0.01, meaning that its share price is 101% less volatile than the S&P 500. Comparatively, Apartment Investment and Management has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Institutional & Insider Ownership

98.8% of Apartment Investment and Management shares are owned by institutional investors. 3.1% of Agree Realty shares are owned by company insiders. Comparatively, 2.8% of Apartment Investment and Management shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Apartment Investment and Management beats Agree Realty on 9 of the 17 factors compared between the two stocks.

About Agree Realty

Agree Realty Corporation is a publicly traded real estate investment trust primarily engaged in the acquisition and development of properties net leased to industry-leading retail tenants. As of March 31, 2019, the Company owned and operated a portfolio of 694 properties, located in 46 states and containing approximately 11.9 million square feet of gross leasable space. The common stock of Agree Realty Corporation is listed on the New York Stock Exchange under the symbol "ADC".

About Apartment Investment and Management

Aimco is a real estate investment trust focused on the ownership and management of quality apartment communities located in select markets in the United States. Aimco is one of the country's largest owners and operators of apartments, with ownership interests in 132 communities in 17 states and the District of Columbia. Aimco common shares are traded on the New York Stock Exchange under the ticker symbol AIV, and are included in the S&P 500.

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