Financial Comparison: EPR Properties (NYSE:EPR) & Agree Realty (NYSE:ADC)

Agree Realty (NYSE:ADC) and EPR Properties (NYSE:EPR) are both mid-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, earnings, dividends, risk and valuation.

Profitability

This table compares Agree Realty and EPR Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Agree Realty	30.05%	3.66%	2.29%
EPR Properties	21.13%	6.30%	2.65%

Risk & Volatility

Agree Realty has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, EPR Properties has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Earnings & Valuation

This table compares Agree Realty and EPR Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agree Realty	$636.80 million	12.52	$189.20 million	$1.77	40.94
EPR Properties	$649.20 million	7.17	$146.07 million	$1.63	37.54

Agree Realty has higher earnings, but lower revenue than EPR Properties. EPR Properties is trading at a lower price-to-earnings ratio than Agree Realty, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

97.8% of Agree Realty shares are held by institutional investors. Comparatively, 74.7% of EPR Properties shares are held by institutional investors. 1.8% of Agree Realty shares are held by insiders. Comparatively, 2.3% of EPR Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Agree Realty pays an annual dividend of $3.07 per share and has a dividend yield of 4.2%. EPR Properties pays an annual dividend of $3.54 per share and has a dividend yield of 5.8%. Agree Realty pays out 173.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EPR Properties pays out 217.2% 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 increased its dividend for 1 consecutive years and EPR Properties has increased its dividend for 1 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings for Agree Realty and EPR Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agree Realty	0	6	9	1	2.69
EPR Properties	1	3	3	1	2.50

Agree Realty presently has a consensus price target of $80.54, suggesting a potential upside of 11.15%. EPR Properties has a consensus price target of $56.43, suggesting a potential downside of 7.79%. Given Agree Realty’s stronger consensus rating and higher probable upside, analysts plainly believe Agree Realty is more favorable than EPR Properties.

Summary

Agree Realty beats EPR Properties on 10 of the 16 factors compared between the two stocks.

About Agree Realty

Agree Realty Corporation is a publicly traded real estate investment trust that is RETHINKING RETAIL through the acquisition and development of properties net leased to industry-leading, omni-channel retail tenants. As of December 31, 2023, the Company owned and operated a portfolio of 2,135 properties, located in 49 states and containing approximately 44.2 million square feet of gross leasable area. The Company's common stock is listed on the New York Stock Exchange under the symbol "ADC".

About EPR Properties

EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues that create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately $5.7 billion (after accumulated depreciation of approximately $1.4 billion) across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.