Sun Communities (NYSE:SUI – Get Free Report) and Agree Realty (NYSE:ADC – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.
Profitability
This table compares Sun Communities and Agree Realty’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sun Communities | 7.46% | 3.21% | 1.40% |
| Agree Realty | 31.62% | 3.77% | 2.39% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Sun Communities and Agree Realty, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sun Communities | 1 | 7 | 6 | 0 | 2.36 |
| Agree Realty | 1 | 3 | 11 | 1 | 2.75 |
Insider & Institutional Ownership
99.6% of Sun Communities shares are held by institutional investors. Comparatively, 97.8% of Agree Realty shares are held by institutional investors. 1.9% of Sun Communities shares are held by company insiders. Comparatively, 1.8% of Agree Realty shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Sun Communities and Agree Realty”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sun Communities | $3.22 billion | 4.98 | -$201.00 million | $1.86 | 67.84 |
| Agree Realty | $537.49 million | 13.77 | $169.96 million | $1.81 | 39.49 |
Agree Realty has lower revenue, but higher earnings than Sun Communities. Agree Realty is trading at a lower price-to-earnings ratio than Sun Communities, indicating that it is currently the more affordable of the two stocks.
Dividends
Sun Communities pays an annual dividend of $3.76 per share and has a dividend yield of 3.0%. Agree Realty pays an annual dividend of $3.04 per share and has a dividend yield of 4.3%. Sun Communities pays out 202.2% 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 pays out 168.0% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
Sun Communities has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Agree Realty has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500.
Summary
Agree Realty beats Sun Communities on 11 of the 17 factors compared between the two stocks.
About Sun Communities
Established in 1975, Sun Communities, Inc. became a publicly owned corporation in December 1993. The Company is a fully integrated REIT listed on the New York Stock Exchange under the symbol: SUI. As of December 31, 2023, the Company owned, operated, or had an interest in a portfolio of 667 developed MH, RV and Marina properties comprising 179,310 developed sites and approximately 48,030 wet slips and dry storage spaces in the U.S., the UK and Canada.
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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