Agree Realty Corporation (ADC) vs Macerich Company (The) (MAC)

Agree Realty Corporation and Macerich Company (The) are both Reit Retail companies. Agree Realty Corporation is the larger, with a market value of $8.4B against $6.7B — 1.3× the size. Macerich Company (The) has negative trailing earnings, so its P/E is not meaningful; Agree Realty Corporation trades at 36.3×. Agree Realty Corporation grew revenue faster over the last twelve months: 18.2% against 1.34%. Agree Realty Corporation has the higher net margin (27.9% vs −16.9%) and the higher return on invested capital (2.26% vs 1.38%). Both pay a dividend; Agree Realty Corporation yields more (5.04% vs 4.07%). Across the 21 metrics below, Agree Realty Corporation leads on 15 and Macerich Company (The) on 6.

Valuation

Metric ADC MAC Reit Retail median
P/E 36.28 n/m 24.82
P/S 10.39 6.16 6.69
P/B 1.28 2.13 1.75
Price to free cash flow n/m n/m 13.29
EV/EBITDA 17.42 19.02 15.42
EV/Sales 15.27 10.67 10.60
Earnings yield 2.76% (2.87%) 3.91%
Free cash flow yield (14.77%) (1.63%) 2.98%

Profitability

Metric ADC MAC Reit Retail median
Gross margin 87.66% 53.96% 71.78%
Operating margin 47.92% 16.30% 34.62%
Net margin 27.89% (16.85%) 27.14%
Free cash flow margin (153.42%) (10.04%) 18.82%
Return on equity 3.68% (6.09%) 7.05%
Return on assets 2.21% (1.97%) 3.40%
Return on invested capital 2.26% 1.38% 3.18%

Growth

Metric ADC MAC Reit Retail median
Revenue growth (TTM) 18.17% 1.34% 8.49%
EPS growth (last fiscal year) (0.56%) 11.36% —
Revenue growth, 5-year CAGR 23.65% 5.22% 8.62%
Net income growth, 5-year CAGR 16.60% 0.00% 1.85%

Health

Metric ADC MAC Reit Retail median
Debt to equity 0.59 1.67 0.94
Current ratio 0.82 0.88 1.62
Net debt to EBITDA 5.26 8.03 5.40

Dividend

Metric ADC MAC Reit Retail median
Dividend yield 5.04% 4.07% 4.57%
Payout ratio 1.63 2.50 1.21

Size

Metric ADC MAC Reit Retail median
Market cap 8.39b 6.68b 3.65b

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