Agree Realty Corporation (ADC) vs NNN REIT, Inc. (NNN)

Agree Realty Corporation and NNN REIT, Inc. are both Reit Retail companies. Agree Realty Corporation and NNN REIT, Inc. are of similar size ($8.4B and $8.0B). NNN REIT, Inc. trades at the lower P/E: 20.2× against 36.3×. Agree Realty Corporation grew revenue faster over the last twelve months: 18.2% against 6.54%. NNN REIT, Inc. has the higher net margin (40.4% vs 27.9%) and the higher return on invested capital (3.92% vs 2.26%). Both pay a dividend; NNN REIT, Inc. yields more (5.73% vs 5.04%). Across the 22 metrics below, NNN REIT, Inc. leads on 15 and Agree Realty Corporation on 7.

Valuation

Metric ADC NNN Reit Retail median
P/E 36.28 20.25 24.82
P/S 10.39 8.19 6.69
P/B 1.28 1.75 1.75
Price to free cash flow n/m n/m 13.29
EV/EBITDA 17.42 14.51 15.42
EV/Sales 15.27 13.43 10.60
Earnings yield 2.76% 4.94% 3.91%
Free cash flow yield (14.77%) (0.53%) 2.98%

Profitability

Metric ADC NNN Reit Retail median
Gross margin 87.66% 96.09% 71.78%
Operating margin 47.92% 62.30% 34.62%
Net margin 27.89% 40.35% 27.14%
Free cash flow margin (153.42%) (4.37%) 18.82%
Return on equity 3.68% 8.72% 7.05%
Return on assets 2.21% 4.10% 3.40%
Return on invested capital 2.26% 3.92% 3.18%

Growth

Metric ADC NNN Reit Retail median
Revenue growth (TTM) 18.17% 6.54% 8.49%
EPS growth (last fiscal year) (0.56%) (3.72%) —
Revenue growth, 5-year CAGR 23.65% 6.99% 8.62%
Net income growth, 5-year CAGR 16.60% 13.07% 1.85%

Health

Metric ADC NNN Reit Retail median
Debt to equity 0.59 1.12 0.94
Current ratio 0.82 1.15 1.62
Net debt to EBITDA 5.26 5.54 5.40

Dividend

Metric ADC NNN Reit Retail median
Dividend yield 5.04% 5.73% 4.57%
Payout ratio 1.63 1.08 1.21

Size

Metric ADC NNN Reit Retail median
Market cap 8.39b 7.98b 3.65b

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