Financial Survey: Agree Realty (NYSE:ADC) vs. LTC Properties (NYSE:LTC)

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

Institutional & Insider Ownership

95.5% of Agree Realty shares are owned by institutional investors. Comparatively, 75.8% of LTC Properties shares are owned by institutional investors. 3.1% of Agree Realty shares are owned by company insiders. Comparatively, 1.6% of LTC Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Agree Realty pays an annual dividend of $2.28 per share and has a dividend yield of 3.2%. LTC Properties pays an annual dividend of $2.28 per share and has a dividend yield of 4.6%. Agree Realty pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LTC Properties pays out 74.5% of its earnings in the form of a dividend. Agree Realty has raised its dividend for 6 consecutive years. LTC Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Agree Realty has a beta of 0.06, meaning that its stock price is 94% less volatile than the S&P 500. Comparatively, LTC Properties has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Agree Realty 0 2 3 1 2.83
LTC Properties 3 0 0 0 1.00

Agree Realty presently has a consensus price target of $68.20, indicating a potential downside of 5.63%. LTC Properties has a consensus price target of $33.00, indicating a potential downside of 32.72%. Given Agree Realty’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Agree Realty is more favorable than LTC Properties.

Profitability

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

Net Margins Return on Equity Return on Assets
Agree Realty 39.76% 5.19% 3.19%
LTC Properties 63.58% 13.18% 7.05%

Earnings & Valuation

This table compares Agree Realty and LTC Properties’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Agree Realty $148.20 million 20.47 $58.17 million $2.85 25.36
LTC Properties $168.65 million 11.56 $154.98 million $3.06 16.03

LTC Properties has higher revenue and earnings than Agree Realty. LTC 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.

About Agree Realty

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 March 31, 2019, the Company owned and operated a portfolio of 694 properties, located in 46 states and containing approximately 11.9 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".

About LTC Properties

LTC is a real estate investment trust (REIT) investing in seniors housing and health care properties primarily through sale-leasebacks, mortgage financing, joint-ventures and structured finance solutions including preferred equity and mezzanine lending. LTC holds more than 200 investments in 28 states with 30 operating partners. The portfolio is comprised of approximately 50% seniors housing and 50% skilled nursing properties.

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