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ADC vs NNN

ADC
Agree Realty Corporation
NEUTRAL
Price
$72.55
Market Cap
$8.36B
Sector
Real Estate
AI Confidence
72%
NNN
NNN REIT, Inc.
NEUTRAL
Price
$43.79
Market Cap
$8.33B
Sector
Real Estate
AI Confidence
85%

Valuation

P/E Ratio
ADC
42.18
NNN
21.15
Forward P/E
ADC
37.35
NNN
20.65
P/B Ratio
ADC
1.45
NNN
1.89
P/S Ratio
ADC
12.15
NNN
8.99
EV/EBITDA
ADC
19.97
NNN
15.62

Profitability

Gross Margin
ADC
87.73%
NNN
95.96%
Operating Margin
ADC
48.68%
NNN
62.22%
Profit Margin
ADC
28.11%
NNN
42.08%
ROE
ADC
3.48%
NNN
8.89%
ROA
ADC
2.33%
NNN
3.92%

Growth

Revenue Growth
ADC
18.7%
NNN
9.1%
Earnings Growth
ADC
7.1%
NNN
-2.2%

Financial Health

Debt/Equity
ADC
0.58
NNN
1.09
Current Ratio
ADC
0.99
NNN
0.12
Quick Ratio
ADC
0.96
NNN
0.08

Dividends

Dividend Yield
ADC
4.36%
NNN
5.51%
Payout Ratio
ADC
178.6%
NNN
114.01%

AI Verdict

ADC NEUTRAL

Agree Realty Corporation (ADC) shows a stable financial health with a Piotroski F-Score of 6/9, indicating moderate strength, though the absence of an Altman Z-Score limits distress risk assessment. The stock trades at a significant premium to its Graham Number of $43.99, currently at $72.55, supported by strong revenue growth and sector-relative profitability. However, the extremely high payout ratio of 178.6% raises sustainability concerns for the dividend, despite a solid 4.36% yield. Analysts are constructive with a 'buy' recommendation and a target price of $81.76, but weak technical trend (0/100) and inconsistent earnings beats temper near-term upside conviction.

Strengths
Stable Piotroski F-Score of 6/9 suggests resilient financial health
Strong revenue growth of 18.7% YoY, outpacing sector average of 45.17% in context of REIT-retail dynamics
High gross and operating margins (87.73% and 48.68%) reflect pricing power and cost efficiency
Risks
Payout ratio of 178.6% exceeds earnings, signaling dividend is not sustainably covered by net income
Elevated valuation with P/E of 42.18 and Forward P/E of 37.35, above sector average of 39.50, increasing downside risk
Technical trend score of 0/100 indicates strong bearish momentum despite fundamental strength
NNN NEUTRAL

NNN presents as a stable but overvalued REIT, evidenced by a Piotroski F-Score of 4/9 and a current price ($43.79) significantly exceeding its Graham Number ($32.88) and Intrinsic Value ($14.49). While the company boasts a stellar track record of earnings beats and strong profit margins, the dividend payout ratio of 114.01% is a critical sustainability concern. Bearish insider activity from the CEO, COO, and CTO, combined with a 0/100 technical trend, suggests limited near-term upside. The stock is currently a defensive income play trading at a premium.

Strengths
Consistent earnings performance with 4/4 beats in the last 4 quarters
Strong profitability with a 42.08% profit margin and 62.22% operating margin
P/E ratio (21.15) is significantly lower than the sector average (39.75)
Risks
Unsustainable dividend payout ratio of 114.01%
Significant valuation gap between current price and Graham/Intrinsic values
Bearish insider sentiment with sales from top three executives (CEO, COO, CTO)

Compare Another Pair

ADC vs NNN: Head-to-Head Comparison

This page compares Agree Realty Corporation (ADC) and NNN REIT, Inc. (NNN) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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