Analyzing RAIT Financial Trust (OTCMKTS:RASF) and Agree Realty (OTCMKTS:ADC)

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

Profitability

This table compares RAIT Financial Trust and Agree Realty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RAIT Financial Trust -236.67% -114.49% -10.53%
Agree Realty 42.72% 5.64% 3.47%

Earnings & Valuation

This table compares RAIT Financial Trust and Agree Realty’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
RAIT Financial Trust $49.26 million 0.00 -$123.46 million N/A N/A
Agree Realty $187.48 million 14.49 $80.08 million $3.08 19.36

Agree Realty has higher revenue and earnings than RAIT Financial Trust.

Risk & Volatility

RAIT Financial Trust has a beta of 4.5, meaning that its stock price is 350% more volatile than the S&P 500. Comparatively, Agree Realty has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for RAIT Financial Trust and Agree Realty, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RAIT Financial Trust 0 0 0 0 N/A
Agree Realty 0 1 5 0 2.83

Agree Realty has a consensus target price of $80.33, indicating a potential upside of 34.72%.

Institutional & Insider Ownership

0.1% of RAIT Financial Trust shares are held by institutional investors. 1.9% of RAIT Financial Trust shares are held by insiders. Comparatively, 3.1% of Agree Realty shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Agree Realty beats RAIT Financial Trust on 7 of the 9 factors compared between the two stocks.

About RAIT Financial Trust

RAIT Financial Trust is an internally-managed real estate investment trust focused on providing debt financing options to owners of commercial real estate throughout the United States.

About Agree Realty

Agree Realty Corporation is a publicly traded real estate investment trust primarily engaged in the acquisition and development of properties net leased to industry-leading retail tenants. As of March 31, 2019, the Company owned and operated a portfolio of 694 properties, located in 46 states and containing approximately 11.9 million square feet of gross leasable space. The common stock of Agree Realty Corporation is listed on the New York Stock Exchange under the symbol "ADC".

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