Agree Realty Corporation (ADC) vs Realty Income Corporation (O)

Agree Realty Corporation and Realty Income Corporation are both Reit Retail companies. Realty Income Corporation is the larger, with a market value of $52.5B against $8.4B — 6.3× the size. Agree Realty Corporation trades at the lower P/E: 36.3× against 40.5×. Agree Realty Corporation grew revenue faster over the last twelve months: 18.2% against 10.9%. Agree Realty Corporation has the higher net margin (27.9% vs 20.9%) and the higher return on invested capital (2.26% vs 1.13%). Both pay a dividend; Realty Income Corporation yields more (5.74% vs 5.04%). Across the 22 metrics below, Agree Realty Corporation leads on 11 and Realty Income Corporation on 11.

Valuation

Metric ADC O Reit Retail median
P/E 36.28 40.54 24.82
P/S 10.39 8.55 6.69
P/B 1.28 1.23 1.75
Price to free cash flow n/m n/m 13.29
EV/EBITDA 17.42 19.99 15.42
EV/Sales 15.27 12.72 10.60
Earnings yield 2.76% 2.47% 3.91%
Free cash flow yield (14.77%) (2.12%) 2.98%

Profitability

Metric ADC O Reit Retail median
Gross margin 87.66% 92.67% 71.78%
Operating margin 47.92% 20.11% 34.62%
Net margin 27.89% 20.93% 27.14%
Free cash flow margin (153.42%) (18.16%) 18.82%
Return on equity 3.68% 3.12% 7.05%
Return on assets 2.21% 1.71% 3.40%
Return on invested capital 2.26% 1.13% 3.18%

Growth

Metric ADC O Reit Retail median
Revenue growth (TTM) 18.17% 10.85% 8.49%
EPS growth (last fiscal year) (0.56%) 19.39% —
Revenue growth, 5-year CAGR 23.65% 28.40% 8.62%
Net income growth, 5-year CAGR 16.60% 21.76% 1.85%

Health

Metric ADC O Reit Retail median
Debt to equity 0.59 0.73 0.94
Current ratio 0.82 5.88 1.62
Net debt to EBITDA 5.26 7.98 5.40

Dividend

Metric ADC O Reit Retail median
Dividend yield 5.04% 5.74% 4.57%
Payout ratio 1.63 2.25 1.21

Size

Metric ADC O Reit Retail median
Market cap 8.39b 52.53b 3.65b

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