SBA Communications (NASDAQ:SBAC – Get Free Report) and Agree Realty (NYSE:ADC – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.
Dividends
SBA Communications pays an annual dividend of $3.92 per share and has a dividend yield of 1.7%. Agree Realty pays an annual dividend of $3.00 per share and has a dividend yield of 4.1%. SBA Communications pays out 76.9% 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 pays out 176.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Profitability
This table compares SBA Communications and Agree Realty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SBA Communications | 19.22% | -9.85% | 5.11% |
| Agree Realty | 32.08% | 3.72% | 2.39% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SBA Communications | 0 | 3 | 9 | 0 | 2.75 |
| Agree Realty | 0 | 3 | 8 | 1 | 2.83 |
SBA Communications currently has a consensus target price of $244.08, indicating a potential upside of 3.70%. Agree Realty has a consensus target price of $72.21, indicating a potential downside of 2.26%. Given SBA Communications’ higher possible upside, research analysts clearly believe SBA Communications is more favorable than Agree Realty.
Institutional and Insider Ownership
97.4% of SBA Communications shares are owned by institutional investors. Comparatively, 97.8% of Agree Realty shares are owned by institutional investors. 1.3% of SBA Communications shares are owned by company insiders. Comparatively, 1.8% of Agree Realty shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
SBA Communications has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Agree Realty has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.
Valuation & Earnings
This table compares SBA Communications and Agree Realty”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SBA Communications | $2.71 billion | 9.33 | $501.81 million | $5.10 | 46.15 |
| Agree Realty | $583.01 million | 12.75 | $169.96 million | $1.70 | 43.46 |
SBA Communications has higher revenue and earnings than Agree Realty. Agree Realty is trading at a lower price-to-earnings ratio than SBA Communications, indicating that it is currently the more affordable of the two stocks.
Summary
SBA Communications beats Agree Realty on 9 of the 17 factors compared between the two stocks.
About SBA Communications
SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. With a portfolio of more than 39,000 communications sites throughout the Americas, Africa and in Asia, SBA is listed on NASDAQ under the symbol SBAC. Our organization is part of the S&P 500 and is one of the top Real Estate Investment Trusts (REITs) by market capitalization.
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".
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