Head-To-Head Contrast: One Liberty Properties (OLP) vs. Realty Income (O)

One Liberty Properties (NYSE: OLP) and Realty Income (NYSE:O) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
One Liberty Properties 32.44% 8.31% 3.30%
Realty Income 29.37% 5.11% 2.64%

Dividends

One Liberty Properties pays an annual dividend of $1.80 per share and has a dividend yield of 7.5%. Realty Income pays an annual dividend of $2.63 per share and has a dividend yield of 5.1%. One Liberty Properties pays out 137.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Realty Income pays out 215.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. One Liberty Properties has increased its dividend for 22 consecutive years and Realty Income has increased its dividend for 5 consecutive years. One Liberty Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current recommendations for One Liberty Properties and Realty Income, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
One Liberty Properties 0 3 0 0 2.00
Realty Income 0 6 3 0 2.33

One Liberty Properties currently has a consensus price target of $25.25, indicating a potential upside of 5.78%. Realty Income has a consensus price target of $66.60, indicating a potential upside of 29.95%. Given Realty Income’s stronger consensus rating and higher possible upside, analysts plainly believe Realty Income is more favorable than One Liberty Properties.

Institutional and Insider Ownership

40.7% of One Liberty Properties shares are owned by institutional investors. Comparatively, 70.2% of Realty Income shares are owned by institutional investors. 8.6% of One Liberty Properties shares are owned by insiders. Comparatively, 0.3% of Realty Income shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

One Liberty Properties has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Realty Income has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
One Liberty Properties $70.59 million 6.42 $24.42 million $1.31 18.22
Realty Income $1.10 billion 13.09 $315.57 million $1.22 42.01

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

Summary

One Liberty Properties beats Realty Income on 9 of the 17 factors compared between the two stocks.

One Liberty Properties Company Profile

One Liberty Properties, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company acquires, owns and manages a geographically diversified portfolio consisting of retail, industrial, flex, and health and fitness properties. As of December 31, 2016, the Company owned 114 properties and participated in joint ventures that own five properties. These 119 properties are located in 30 states and have an aggregate of approximately 10.1 million square feet (including an aggregate of approximately 1.2 million square feet at properties owned by its joint ventures). As of December 31, 2016, the Company’s property locations included Fort Mill, South Carolina; Royersford, Pennsylvania; Round Rock, Texas; W.Hartford, Connecticut; Delport, Missouri; Brooklyn, New York City; Lakemoor, Illinois; Tucker, Georgia; Cedar Park, Texas; Lake Charles, Louisiana; Sandy Springs, Georgia; Wichita, Kansas; Melville, New York; Ronkonkoma, New York, and Niles, Illinois.

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.

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