Realty Income (O) and Equity One (EQY) Financial Review

Realty Income (NYSE: O) and Equity One (NYSE:EQY) are both mid-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Dividends

Realty Income pays an annual dividend of $2.54 per share and has a dividend yield of 4.5%. Equity One pays an annual dividend of $0.72 per share and has a dividend yield of 2.3%. Realty Income 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. Equity One pays out 146.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equity One has raised its dividend for 21 consecutive years.

Risk & Volatility

Realty Income has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500. Comparatively, Equity One has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Profitability

This table compares Realty Income and Equity One’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Realty Income 29.37% 5.11% 2.64%
Equity One 18.64% 3.82% 2.05%

Valuation & Earnings

This table compares Realty Income and Equity One’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Realty Income $1.10 billion 14.49 $315.57 million $1.22 46.49
Equity One N/A N/A N/A $0.49 62.96

Realty Income has higher revenue and earnings than Equity One. Realty Income is trading at a lower price-to-earnings ratio than Equity One, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

69.9% of Realty Income shares are owned by institutional investors. Comparatively, 64.0% of Equity One shares are owned by institutional investors. 0.3% of Realty Income shares are owned by insiders. Comparatively, 35.9% of Equity One shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Realty Income and Equity One, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Realty Income 0 6 3 0 2.33
Equity One 0 0 0 0 N/A

Realty Income presently has a consensus target price of $66.60, indicating a potential upside of 17.42%. Given Realty Income’s higher probable upside, equities analysts plainly believe Realty Income is more favorable than Equity One.

Summary

Realty Income beats Equity One on 9 of the 14 factors compared between the two stocks.

Realty Income Company Profile

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.

Equity One Company Profile

Equity One, Inc. is a real estate investment trust (REIT). The Company owns, manages, acquires, develops and redevelops shopping centers and retail properties located in supply constrained suburban and urban communities. As of December 31, 2016, the Company’s portfolio consisted of 122 properties, including 101 retail properties and five non-retail properties totaling approximately 12.8 million square feet of gross leasable area (GLA), 10 development or redevelopment properties with approximately 2.3 million square feet of GLA, and six land parcels. Its retail occupancy excluding developments and redevelopments was 95.8% and included national, regional and local tenants as of December 31, 2016. In addition, the Company had joint venture interests in six retail properties and two office buildings totaling approximately 1.4 million square feet of GLA as of December 31, 2016.

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