Critical Review: Realty Income (O) vs. Its Competitors

Realty Income (NYSE: O) is one of 75 public companies in the “Commercial REITs” industry, but how does it compare to its rivals? We will compare Realty Income to similar companies based on the strength of its risk, valuation, earnings, profitability, dividends, institutional ownership and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Realty Income and its rivals, as provided by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Realty Income 1 4 3 0 2.25
Realty Income Competitors 635 2583 2227 23 2.30

Realty Income currently has a consensus price target of $66.60, indicating a potential upside of 19.83%. As a group, “Commercial REITs” companies have a potential upside of 6.43%. Given Realty Income’s higher probable upside, research analysts clearly believe Realty Income is more favorable than its rivals.

Volatility and Risk

Realty Income has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, Realty Income’s rivals have a beta of 0.76, indicating that their average stock price is 24% less volatile than the S&P 500.

Valuation and Earnings

This table compares Realty Income and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Realty Income $1.10 billion $315.57 million 45.56
Realty Income Competitors $526.05 million $107.73 million 396.45

Realty Income has higher revenue and earnings than its rivals. Realty Income is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.


This table compares Realty Income and its rivals’ 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%
Realty Income Competitors 52.96% 6.70% 3.88%


Realty Income pays an annual dividend of $2.54 per share and has a dividend yield of 4.6%. 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. As a group, “Commercial REITs” companies pay a dividend yield of 4.0% and pay out 91.2% of their earnings in the form of a dividend. Realty Income has raised its dividend for 21 consecutive years.

Insider and Institutional Ownership

70.0% of Realty Income shares are held by institutional investors. Comparatively, 72.8% of shares of all “Commercial REITs” companies are held by institutional investors. 0.3% of Realty Income shares are held by insiders. Comparatively, 7.3% of shares of all “Commercial REITs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.


Realty Income rivals beat Realty Income on 11 of the 15 factors compared.

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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