Realty Income Corporation (NYSE: O) is one of 83 public companies in the “Commercial REITs” industry, but how does it contrast to its competitors? We will compare Realty Income Corporation to similar companies based on the strength of its earnings, analyst recommendations, dividends, risk, profitability, institutional ownership and valuation.

Valuation & Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Realty Income Corporation $1.10 billion $315.57 million 46.12
Realty Income Corporation Competitors $544.77 million $101.33 million 548.40

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

Profitability

This table compares Realty Income Corporation and its competitors’ 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 53.48% 6.86% 3.95%

Dividends

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 3.8% and pay out 168.0% of their earnings in the form of a dividend. Realty Income Corporation has raised its dividend for 21 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Realty Income Corporation and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Realty Income Corporation 1 5 3 0 2.22
Realty Income Corporation Competitors 628 2510 2208 24 2.30

Realty Income Corporation presently has a consensus target price of $69.25, suggesting a potential upside of 23.07%. As a group, “Commercial REITs” companies have a potential upside of 9.75%. Given Realty Income Corporation’s higher possible upside, analysts clearly believe Realty Income Corporation is more favorable than its competitors.

Insider and Institutional Ownership

67.2% of Realty Income Corporation shares are held by institutional investors. Comparatively, 70.0% of shares of all “Commercial REITs” companies are held by institutional investors. 0.3% of Realty Income Corporation shares are held by insiders. Comparatively, 8.7% of shares of all “Commercial REITs” companies are held 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 & Risk

Realty Income Corporation has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Realty Income Corporation’s competitors have a beta of 0.82, meaning that their average share price is 18% less volatile than the S&P 500.

Summary

Realty Income Corporation competitors beat Realty Income Corporation on 11 of the 15 factors compared.

Realty Income Corporation 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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