WallStSmart

Agree Realty Corporation (ADC)vsEssential Properties Realty Trust Inc (EPRT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Agree Realty Corporation generates 28% more annual revenue ($718.40M vs $561.22M). EPRT leads profitability with a 45.1% profit margin vs 28.4%. EPRT trades at a lower P/E of 24.5x. ADC earns a higher WallStSmart Score of 68/100 (B-).

ADC

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 7.0Value: 7.3Quality: 3.8
Piotroski: 2/9Altman Z: 1.25

EPRT

Buy

62

out of 100

Grade: C+

Growth: 8.0Profit: 7.5Value: 6.3Quality: 7.0
Piotroski: 3/9Altman Z: 1.28
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ADCSignificantly Overvalued (-48.5%)

Margin of Safety

-48.5%

Fair Value

$51.68

Current Price

$74.22

$22.54 premium

UndervaluedFair: $51.68Overvalued
EPRTFair Value (-1.1%)

Margin of Safety

-1.1%

Fair Value

$31.19

Current Price

$30.69

$0.50 premium

UndervaluedFair: $31.19Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ADC5 strengths · Avg: 9.4/10
PEG RatioValuation
0.1310/10

Growing faster than its price suggests

Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Operating MarginProfitability
48.3%10/10

Strong operational efficiency at 48.3%

Profit MarginProfitability
28.4%9/10

Keeps 28 of every $100 in revenue as profit

Revenue GrowthGrowth
18.5%8/10

18.5% revenue growth

EPRT4 strengths · Avg: 9.0/10
Profit MarginProfitability
45.1%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
65.6%10/10

Strong operational efficiency at 65.6%

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
25.2%8/10

Revenue surging 25.2% year-over-year

Areas to Watch

ADC4 concerns · Avg: 2.5/10
Return on EquityProfitability
3.5%3/10

ROE of 3.5% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
42.5x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-1.47B2/10

Negative free cash flow — burning cash

EPRT4 concerns · Avg: 2.5/10
Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-165.37M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.282/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ADC

The strongest argument for ADC centers on PEG Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 28.4% and operating margin at 48.3%. Revenue growth of 18.5% demonstrates continued momentum.

Bull Case : EPRT

The strongest argument for EPRT centers on Profit Margin, Operating Margin, Price/Book. Profitability is solid with margins at 45.1% and operating margin at 65.6%. Revenue growth of 25.2% demonstrates continued momentum.

Bear Case : ADC

The primary concerns for ADC are Return on Equity, Piotroski F-Score, P/E Ratio. A P/E of 42.5x leaves little room for execution misses.

Bear Case : EPRT

The primary concerns for EPRT are Return on Equity, Piotroski F-Score, Free Cash Flow.

Key Dynamics to Monitor

EPRT carries more volatility with a beta of 0.99 — expect wider price swings.

EPRT is growing revenue faster at 25.2% — sustainability is the question.

EPRT generates stronger free cash flow (-165M), providing more financial flexibility.

Monitor REIT - RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ADC scores higher overall (68/100 vs 62/100), backed by strong 28.4% margins and 18.5% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Agree Realty Corporation

REAL ESTATE · REIT - RETAIL · USA

Agree Realty Corporation is a publicly traded real estate investment trust primarily engaged in the acquisition and development of net leased properties to industry leading retail tenants.

Essential Properties Realty Trust Inc

REAL ESTATE · REIT - RETAIL · USA

Essential Properties Realty Trust, Inc., a real estate company, acquires, owns and manages single-tenant properties in the United States. The company is headquartered in Princeton, New Jersey.

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