Realty Income Corporation (NYSE: O) is one of 75 public companies in the “Commercial REITs” industry, but how does it weigh in compared to its peers? We will compare Realty Income Corporation to related businesses based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, valuation, risk and earnings.
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||52.53%||5.77%||3.74%|
Insider & Institutional Ownership
67.2% of Realty Income Corporation shares are held by institutional investors. Comparatively, 71.6% of shares of all “Commercial REITs” companies are held by institutional investors. 0.3% of Realty Income Corporation shares are held by insiders. Comparatively, 7.5% of shares of all “Commercial REITs” companies are held 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.
Volatility and Risk
Realty Income Corporation has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500. Comparatively, Realty Income Corporation’s peers have a beta of 0.79, suggesting that their average share price is 21% less volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Realty Income Corporation and its peers, 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||630||2471||2134||23||2.29|
Realty Income Corporation presently has a consensus target price of $69.25, suggesting a potential upside of 22.61%. As a group, “Commercial REITs” companies have a potential upside of 5.30%. Given Realty Income Corporation’s higher possible upside, equities research analysts plainly believe Realty Income Corporation is more favorable than its peers.
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 185.3% of their earnings in the form of a dividend. Realty Income Corporation has raised its dividend for 21 consecutive years.
Valuation and Earnings
This table compares Realty Income Corporation and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Realty Income Corporation||$1.10 billion||$315.57 million||46.30|
|Realty Income Corporation Competitors||$536.81 million||$100.12 million||436.48|
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 peers 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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