Federal Realty Investment Trust (NYSE:FRT) & Agree Realty (NYSE:ADC) Head to Head Analysis
by Tristan Rich · The Markets DailyAgree Realty (NYSE:ADC – Get Free Report) and Federal Realty Investment Trust (NYSE:FRT – Get Free Report) are both mid-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.
Risk and Volatility
Agree Realty has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, Federal Realty Investment Trust has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.
Insider and Institutional Ownership
97.8% of Agree Realty shares are held by institutional investors. Comparatively, 93.9% of Federal Realty Investment Trust shares are held by institutional investors. 1.8% of Agree Realty shares are held by insiders. Comparatively, 1.0% of Federal Realty Investment Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Dividends
Agree Realty pays an annual dividend of $3.14 per share and has a dividend yield of 4.1%. Federal Realty Investment Trust pays an annual dividend of $4.52 per share and has a dividend yield of 4.4%. Agree Realty pays out 177.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Federal Realty Investment Trust pays out 96.8% 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 Federal Realty Investment Trust has raised its dividend for 58 consecutive years. Federal Realty Investment Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Agree Realty and Federal Realty Investment Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Agree Realty | 0 | 6 | 8 | 1 | 2.67 |
| Federal Realty Investment Trust | 0 | 9 | 7 | 1 | 2.53 |
Agree Realty presently has a consensus target price of $83.21, suggesting a potential upside of 9.30%. Federal Realty Investment Trust has a consensus target price of $111.60, suggesting a potential upside of 8.15%. Given Agree Realty’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Agree Realty is more favorable than Federal Realty Investment Trust.
Earnings & Valuation
This table compares Agree Realty and Federal Realty Investment Trust”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Agree Realty | $718.40 million | 12.72 | $204.35 million | $1.77 | 43.01 |
| Federal Realty Investment Trust | $1.28 billion | 6.96 | $411.08 million | $4.67 | 22.10 |
Federal Realty Investment Trust has higher revenue and earnings than Agree Realty. Federal Realty Investment 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.
Profitability
This table compares Agree Realty and Federal Realty Investment Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Agree Realty | 28.44% | 3.79% | 2.32% |
| Federal Realty Investment Trust | 32.14% | 13.10% | 4.67% |
Summary
Federal Realty Investment Trust beats Agree Realty 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 Federal Realty Investment Trust
Federal Realty Investment Trust is an equity real estate investment trust, which engages in the provision of ownership, management, and redevelopment of retail and mixed-use properties located primarily in communities where demand exceeds supply in strategically selected metropolitan markets. The company was founded in 1962 and is headquartered in North Bethesda, MD.