Agree Realty (NYSE:ADC – Get Free Report) and AGNC Investment (NASDAQ:AGNC – Get Free Report) are both mid-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.
Dividends
Agree Realty pays an annual dividend of $3.03 per share and has a dividend yield of 4.3%. AGNC Investment pays an annual dividend of $1.44 per share and has a dividend yield of 15.2%. Agree Realty pays out 167.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AGNC Investment pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. AGNC Investment is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Agree Realty and AGNC Investment”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Agree Realty | $600.53 million | 12.12 | $169.96 million | $1.81 | 38.83 |
AGNC Investment | $1.26 billion | 6.65 | $155.00 million | $1.44 | 6.56 |
Insider and Institutional Ownership
97.8% of Agree Realty shares are held by institutional investors. Comparatively, 38.3% of AGNC Investment shares are held by institutional investors. 1.8% of Agree Realty shares are held by company insiders. Comparatively, 0.5% of AGNC Investment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings for Agree Realty and AGNC Investment, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Agree Realty | 1 | 4 | 10 | 1 | 2.69 |
AGNC Investment | 0 | 3 | 7 | 0 | 2.70 |
Agree Realty currently has a consensus price target of $78.03, suggesting a potential upside of 11.02%. AGNC Investment has a consensus price target of $10.44, suggesting a potential upside of 10.45%. Given Agree Realty’s higher probable upside, equities research analysts clearly believe Agree Realty is more favorable than AGNC Investment.
Risk and Volatility
Agree Realty has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, AGNC Investment has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.
Profitability
This table compares Agree Realty and AGNC Investment’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Agree Realty | 31.62% | 3.77% | 2.39% |
AGNC Investment | 42.19% | 23.41% | 2.14% |
Summary
Agree Realty beats AGNC Investment on 10 of the 17 factors compared between the two stocks.
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 AGNC Investment
AGNC Investment Corp., formerly American Capital Agency Corp., is a real estate investment trust. The Company invests in agency residential mortgage-backed securities on a leveraged basis. Its investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) for which the principal and interest payments are guaranteed by a government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) (collectively, GSEs). Its agency securities include agency residential mortgage-backed securities (Agency RMBS) and to-be-announced forward contracts (TBAs). Its Non-Agency Securities include credit risk transfer securities (CRT), non-agency residential mortgage-backed securities (Non-Agency RMBS) and commercial mortgage-backed securities (CMBS).
Receive News & Ratings for Agree Realty Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Agree Realty and related companies with MarketBeat.com's FREE daily email newsletter.