Agree Realty (NYSE:ADC) and Region Group (OTCMKTS:SCPAF) Head-To-Head Comparison

Region Group (OTCMKTS:SCPAF) and Agree Realty (NYSE:ADC) are both real estate companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Profitability

This table compares Region Group and Agree Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Region Group	N/A	N/A	N/A
Agree Realty	28.84%	3.90%	2.36%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Region Group and Agree Realty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Region Group	0	0	0	0	0.00
Agree Realty	0	4	11	1	2.81

Agree Realty has a consensus price target of $83.94, suggesting a potential upside of 10.98%. Given Agree Realty’s stronger consensus rating and higher possible upside, analysts plainly believe Agree Realty is more favorable than Region Group.

Institutional and Insider Ownership

31.7% of Region Group shares are owned by institutional investors. Comparatively, 97.8% of Agree Realty shares are owned by institutional investors. 1.8% of Agree Realty shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Region Group pays an annual dividend of $0.11 per share and has a dividend yield of 7.1%. Agree Realty pays an annual dividend of $3.20 per share and has a dividend yield of 4.2%. Region Group pays out 63.6% of its earnings in the form of a dividend. Agree Realty pays out 172.0% 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 1 consecutive years. Region Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Region Group	N/A	N/A	N/A	$0.17	8.96
Agree Realty	$718.40 million	13.10	$204.35 million	$1.86	40.66

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

Summary

Agree Realty beats Region Group on 13 of the 15 factors compared between the two stocks.

About Region Group

Region Group (RGN) includes two internally managed real estate investment trusts owning a portfolio of convenience-based retail properties located across Australia. Region invests in retail properties predominantly anchored by non-discretionary retailers, with long leases to tenants such as Woolworths Limited, Coles Limited and companies in the Wesfarmers Limited group. Region Group comprises two registered managed investment schemes, Region Management Trust (ARSN 160 612 626) and Region Retail Trust (ARSN 160 612 788). The security in each Trust are stapled to form the stapled listed vehicle, Region Group (ASX: RGN), formerly known as SCA Property Group (ASX: SCP).

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".