Agree Realty Corporation (ADC) vs Simon Property Group, Inc. (SPG)

Agree Realty Corporation and Simon Property Group, Inc. are both Reit Retail companies. Simon Property Group, Inc. is the larger, with a market value of $71.7B against $8.4B — 8.5× the size. Simon Property Group, Inc. trades at the lower P/E: 14.4× against 36.3×. Agree Realty Corporation grew revenue faster over the last twelve months: 18.2% against 15.0%. Simon Property Group, Inc. has the higher net margin (66.5% vs 27.9%) and the higher return on invested capital (6.18% vs 2.26%). Both pay a dividend; Simon Property Group, Inc. yields more (5.40% vs 5.04%). Across the 22 metrics below, Simon Property Group, Inc. leads on 14 and Agree Realty Corporation on 8.

Valuation

Metric ADC SPG Reit Retail median
P/E 36.28 14.44 24.82
P/S 10.39 9.56 6.69
P/B 1.28 11.99 1.75
Price to free cash flow n/m 20.63 13.29
EV/EBITDA 17.42 18.26 15.42
EV/Sales 15.27 13.55 10.60
Earnings yield 2.76% 6.92% 3.91%
Free cash flow yield (14.77%) 4.85% 2.98%

Profitability

Metric ADC SPG Reit Retail median
Gross margin 87.66% 81.43% 71.78%
Operating margin 47.92% 47.40% 34.62%
Net margin 27.89% 66.52% 27.14%
Free cash flow margin (153.42%) 46.36% 18.82%
Return on equity 3.68% 110.70% 7.05%
Return on assets 2.21% 12.65% 3.40%
Return on invested capital 2.26% 6.18% 3.18%

Growth

Metric ADC SPG Reit Retail median
Revenue growth (TTM) 18.17% 15.02% 8.49%
EPS growth (last fiscal year) (0.56%) 95.18% —
Revenue growth, 5-year CAGR 23.65% 6.67% 8.62%
Net income growth, 5-year CAGR 16.60% 33.05% 1.85%

Health

Metric ADC SPG Reit Retail median
Debt to equity 0.59 5.15 0.94
Current ratio 0.82 1.05 1.62
Net debt to EBITDA 5.26 5.84 5.40

Dividend

Metric ADC SPG Reit Retail median
Dividend yield 5.04% 5.40% 4.57%
Payout ratio 1.63 1.09 1.21

Size

Metric ADC SPG Reit Retail median
Market cap 8.39b 71.72b 3.65b

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