Vornado Realty Trust (NYSE:VNO) and Agree Realty (NYSE:ADC) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.
Volatility and Risk
Vornado Realty Trust has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Agree Realty has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500.
88.7% of Vornado Realty Trust shares are owned by institutional investors. 9.6% of Vornado Realty Trust shares are owned by company insiders. Comparatively, 3.1% of Agree Realty shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Vornado Realty Trust and Agree Realty’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Vornado Realty Trust||$2.16 billion||5.91||$449.95 million||$3.76||17.82|
|Agree Realty||$148.20 million||16.56||$58.17 million||$2.85||22.92|
Vornado Realty Trust has higher revenue and earnings than Agree Realty. Vornado Realty 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.
Vornado Realty Trust pays an annual dividend of $2.64 per share and has a dividend yield of 3.9%. Agree Realty pays an annual dividend of $2.22 per share and has a dividend yield of 3.4%. Vornado Realty Trust pays out 70.2% of its earnings in the form of a dividend. Agree Realty pays out 77.9% 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 6 consecutive years. Vornado Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Vornado Realty Trust and Agree Realty’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Vornado Realty Trust||20.22%||8.15%||1.99%|
This is a breakdown of recent recommendations and price targets for Vornado Realty Trust and Agree Realty, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Vornado Realty Trust||2||3||6||0||2.36|
Vornado Realty Trust presently has a consensus target price of $77.63, suggesting a potential upside of 15.84%. Agree Realty has a consensus target price of $66.33, suggesting a potential upside of 1.57%. Given Vornado Realty Trust’s higher possible upside, equities analysts clearly believe Vornado Realty Trust is more favorable than Agree Realty.
Vornado Realty Trust beats Agree Realty on 11 of the 18 factors compared between the two stocks.
Vornado Realty Trust Company Profile
Vornado's portfolio is concentrated in the nation's key market New York City along with the premier asset in both Chicago and San Francisco. Vornado is also the real estate industry leader in sustainability policy. The company owns and manages over 23 million square feet of LEED certified buildings and received the Energy Star Partner of the Year Award, Sustained Excellence 2017. In 2012, Vornado commemorated 50 years on the NYSE.
Agree Realty Company Profile
Agree Realty Corporation is a publicly traded real estate investment trust primarily engaged in the acquisition and development of properties net leased to industry-leading retail tenants. As of December 31, 2018, the Company owned and operated a portfolio of 645 properties, located in 46 states and containing approximately 11.2 million square feet of gross leasable space. The common stock of Agree Realty Corporation is listed on the New York Stock Exchange under the symbol "ADC".
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