Critical Review: Agree Realty (NYSE:ADC) versus Horizon Group (OTCMKTS:HGPI)

Agree Realty (NYSE:ADC) and Horizon Group (OTCMKTS:HGPI) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Risk and Volatility

Agree Realty has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, Horizon Group has a beta of -0.22, suggesting that its stock price is 122% less volatile than the S&P 500.

Insider and Institutional Ownership

97.8% of Agree Realty shares are owned by institutional investors. 1.8% of Agree Realty shares are owned by insiders. Comparatively, 15.9% of Horizon Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Agree Realty and Horizon Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Agree Realty	29.25%	3.95%	2.39%
Horizon Group	N/A	N/A	N/A

Earnings & Valuation

This table compares Agree Realty and Horizon Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Agree Realty	$718.40 million	12.78	$204.35 million	$1.85	41.32
Horizon Group	N/A	N/A	N/A	N/A	N/A

Agree Realty has higher revenue and earnings than Horizon Group.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Agree Realty and Horizon Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Agree Realty	0	7	9	1	2.65
Horizon Group	0	0	0	0	0.00

Agree Realty currently has a consensus target price of $84.36, indicating a potential upside of 10.34%. Given Agree Realty’s stronger consensus rating and higher possible upside, research analysts plainly believe Agree Realty is more favorable than Horizon Group.

Summary

Agree Realty beats Horizon Group on 10 of the 11 factors compared between the two stocks.

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".

About Horizon Group

Based in Chicago, Illinois, Horizon Group Properties, Inc. has 12 operating factory outlet centers and one power center in 10 states totaling more than 2.6 million square feet.