Agree Realty Corporation (ADC)vsPhillips Edison & Co Inc (PECO)
ADC
Agree Realty Corporation
$74.22
-1.36%
REAL ESTATE · Cap: $9.06B
PECO
Phillips Edison & Co Inc
$36.83
-0.03%
REAL ESTATE · Cap: $5.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Phillips Edison & Co Inc generates 1% more annual revenue ($726.59M vs $718.40M). ADC leads profitability with a 28.4% profit margin vs 15.3%. PECO trades at a lower P/E of 41.4x. ADC earns a higher WallStSmart Score of 68/100 (B-).
ADC
Strong Buy68
out of 100
Grade: B-
PECO
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-48.5%
Fair Value
$51.68
Current Price
$74.22
$22.54 premium
Margin of Safety
+9.5%
Fair Value
$41.65
Current Price
$36.83
$4.82 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Strong operational efficiency at 48.3%
Keeps 28 of every $100 in revenue as profit
18.5% revenue growth
Reasonable price relative to book value
Strong operational efficiency at 28.7%
Areas to Watch
ROE of 3.5% — below average capital efficiency
Weak financial health signals
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
1.5% earnings growth
ROE of 4.7% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : PECO
The strongest argument for PECO centers on Price/Book, Operating Margin. Profitability is solid with margins at 15.3% and operating margin at 28.7%.
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 : PECO
The primary concerns for PECO are EPS Growth, Return on Equity, Debt/Equity. A P/E of 41.4x leaves little room for execution misses.
Key Dynamics to Monitor
ADC profiles as a growth stock while PECO is a mature play — different risk/reward profiles.
PECO carries more volatility with a beta of 0.56 — expect wider price swings.
ADC is growing revenue faster at 18.5% — sustainability is the question.
PECO generates stronger free cash flow (56M), providing more financial flexibility.
Bottom Line
ADC scores higher overall (68/100 vs 56/100), 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.
Phillips Edison & Co Inc
REAL ESTATE · REIT - RETAIL · USA
Phillips Edison & Company, Inc. (PECO) is a leading fully integrated real estate investment trust (REIT) that focuses on the ownership, operation, and development of grocery-anchored shopping centers across the United States. With a diverse portfolio of over 300 strategically positioned properties, PECO leverages favorable demographic trends and strong consumer preferences to drive value creation. The company is dedicated to building robust relationships with national and regional retailers, enhancing tenant stability and fostering sustainable cash flow growth. Committed to delivering long-term shareholder value, PECO emphasizes disciplined capital management and sustainability initiatives in its operational strategies.
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