O vs ADC

For growth investors, Agree Realty Corporation (ADC) is the stronger pick with 16.

4% revenue growth year-over-year, versus 9. 1% for Realty Income Corporation (O). Agree Realty Corporation (ADC) offers the better valuation at 42. 9x trailing P/E (38. 8x forward), making it the more compelling value choice. Analysts rate Agree Realty Corporation (ADC) a "Buy" — based on 32 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Agree Realty Corporation (ADC) is the cheapest at 42.

9x versus Realty Income Corporation at 54. 3x. On forward P/E, Realty Income Corporation is actually cheaper at 38. 2x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Realty Income Corporation wins at 73. 34x versus Agree Realty Corporation's 113. 14x.

Over the past 5 years, Agree Realty Corporation (ADC) delivered a total return of +29.

9%, compared to +21. 3% for Realty Income Corporation (O). Over 10 years, the gap is even starker: ADC returned +137. 3% versus O's +51. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Agree Realty Corporation (ADC) is the lower-risk stock at -0.

14β versus Realty Income Corporation's 0. 09β — meaning O is approximately -165% more volatile than ADC relative to the S&P 500.

By revenue growth (latest reported year), Agree Realty Corporation (ADC) is pulling ahead at 16.

4% versus 9. 1% for Realty Income Corporation (O). On earnings-per-share growth, the picture is similar: Realty Income Corporation grew EPS 19. 4% year-over-year, compared to -0. 6% for Agree Realty Corporation. Over a 3-year CAGR, O leads at 19. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Agree Realty Corporation (ADC) is the more profitable company, earning 28.

4% net margin versus 18. 4% for Realty Income Corporation — meaning it keeps 28. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ADC leads at 47. 4% versus 28. 3% for O. At the gross margin level — before operating expenses — O leads at 89. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Realty Income Corporation (O) is the more undervalued stock at a PEG of 73. 34x versus Agree Realty Corporation's 113. 14x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Realty Income Corporation (O) trades at 38. 2x forward P/E versus 38. 8x for Agree Realty Corporation — 0. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ADC: 9. 9% to $83. 50.

In this comparison, ADC (4.

0% yield) pays a dividend. O does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Agree Realty Corporation (ADC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.

14), 4. 0% yield, +137. 3% 10Y return). Both have compounded well over 10 years (ADC: +137. 3%, O: +51. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Real Estate sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: O is a mid-cap quality compounder stock; ADC is a small-cap high-growth stock. ADC pays a dividend while O does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.