Critical Comparison: Realty Income Corporation (O) & Its Peers
Realty Income Corporation (NYSE: O) is one of 77 publicly-traded companies in the “Commercial REITs” industry, but how does it contrast to its peers? We will compare Realty Income Corporation to related businesses based on the strength of its risk, valuation, institutional ownership, analyst recommendations, dividends, profitability and earnings.
This is a breakdown of recent recommendations and price targets for Realty Income Corporation and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Realty Income Corporation||1||5||3||0||2.22|
|Realty Income Corporation Competitors||657||2599||2234||23||2.29|
Insider and Institutional Ownership
67.5% of Realty Income Corporation shares are owned by institutional investors. Comparatively, 71.6% of shares of all “Commercial REITs” companies are owned by institutional investors. 0.3% of Realty Income Corporation shares are owned by insiders. Comparatively, 7.5% of shares of all “Commercial REITs” companies are owned 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.
Earnings and Valuation
This table compares Realty Income Corporation and its peers revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Realty Income Corporation||$1.10 billion||$315.57 million||46.34|
|Realty Income Corporation Competitors||$536.81 million||$100.12 million||477.09|
Realty Income Corporation has higher revenue and earnings than its peers. Realty Income Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Realty Income Corporation pays an annual dividend of $2.54 per share and has a dividend yield of 4.5%. Realty Income Corporation pays out 208.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Commercial REITs” companies pay a dividend yield of 3.9% and pay out 181.3% of their earnings in the form of a dividend. Realty Income Corporation has increased its dividend for 21 consecutive years.
Volatility and Risk
Realty Income Corporation has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500. Comparatively, Realty Income Corporation’s peers have a beta of 0.77, suggesting that their average stock price is 23% less volatile than the S&P 500.
This table compares Realty Income Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Realty Income Corporation||29.37%||5.11%||2.64%|
|Realty Income Corporation Competitors||53.90%||6.83%||3.94%|
Realty Income Corporation peers beat Realty Income Corporation on 11 of the 15 factors compared.
About Realty Income Corporation
Realty Income Corporation is a real estate investment trust (REIT). The Company is engaged in in-house acquisition, portfolio management, asset management, credit research, real estate research, legal, finance and accounting, information technology and capital markets capabilities. As of December 31, 2016, the Company owned a diversified portfolio of 4,944 properties located in 49 states and Puerto Rico, with over 83.0 million square feet of leasable space leased to 248 different commercial tenants doing business in 47 separate industries. As of December 31, 2016, of the 4,944 properties in the portfolio, 4,920, or 99.5%, were single-tenant properties, and the remaining were multi-tenant properties. As of December 31, 2016, of the 4,920 single-tenant properties, 4,836 were leased with a weighted average remaining lease term (excluding rights to extend a lease at the option of the tenant) of approximately 9.8 years.
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