Agree Realty (NYSE:ADC – Get Free Report) and TPG RE Finance Trust (NYSE:TRTX – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.
Dividends
Agree Realty pays an annual dividend of $3.04 per share and has a dividend yield of 4.1%. TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 10.6%. Agree Realty pays out 168.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TPG RE Finance Trust pays out 139.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TPG RE Finance Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
97.8% of Agree Realty shares are held by institutional investors. Comparatively, 57.1% of TPG RE Finance Trust shares are held by institutional investors. 1.8% of Agree Realty shares are held by insiders. Comparatively, 2.5% of TPG RE Finance Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Agree Realty | 0 | 3 | 10 | 1 | 2.86 |
| TPG RE Finance Trust | 1 | 0 | 5 | 0 | 2.67 |
Agree Realty currently has a consensus price target of $76.89, indicating a potential upside of 3.30%. TPG RE Finance Trust has a consensus price target of $9.08, indicating a potential upside of 0.48%. Given Agree Realty’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Agree Realty is more favorable than TPG RE Finance Trust.
Profitability
This table compares Agree Realty and TPG RE Finance Trust’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% |
| TPG RE Finance Trust | 19.65% | -7.50% | -2.19% |
Volatility & Risk
Agree Realty has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, TPG RE Finance Trust has a beta of 2.17, meaning that its stock price is 117% more volatile than the S&P 500.
Earnings & Valuation
This table compares Agree Realty and TPG RE Finance Trust”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Agree Realty | $537.49 million | 14.34 | $169.96 million | $1.81 | 41.13 |
| TPG RE Finance Trust | $154.87 million | 4.72 | -$116.63 million | $0.69 | 13.10 |
Agree Realty has higher revenue and earnings than TPG RE Finance Trust. TPG RE Finance Trust is trading at a lower price-to-earnings ratio than Agree Realty, indicating that it is currently the more affordable of the two stocks.
Summary
Agree Realty beats TPG RE Finance Trust on 13 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 TPG RE Finance Trust
TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in the United States. It invests in commercial mortgage loans; subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments; and commercial real estate collateralized loan obligations and commercial mortgage-backed securities secured by properties primarily in the multifamily, life science, mixed-use, hospitality, self storage, industrial, and retail real estate sectors. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. TPG RE Finance Trust, Inc. was incorporated in 2014 and is based in New York, New York.
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