Realty Income (NYSE:O – Get Free Report) and Unibail-Rodamco-Westfield (OTCMKTS:UNBLF – Get Free Report) are both real estate companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Dividends
Realty Income pays an annual dividend of $3.25 per share and has a dividend yield of 5.2%. Unibail-Rodamco-Westfield pays an annual dividend of $8.90 per share and has a dividend yield of 7.3%. Realty Income pays out 266.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Unibail-Rodamco-Westfield pays out 79.8% 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 has increased its dividend for 31 consecutive years. Unibail-Rodamco-Westfield is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
70.8% of Realty Income shares are held by institutional investors. Comparatively, 41.2% of Unibail-Rodamco-Westfield shares are held by institutional investors. 0.1% of Realty Income shares 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.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Realty Income | 18.94% | 2.80% | 1.55% |
| Unibail-Rodamco-Westfield | N/A | N/A | N/A |
Valuation and Earnings
This table compares Realty Income and Unibail-Rodamco-Westfield”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 | $5.75 billion | 10.17 | $1.06 billion | $1.22 | 51.39 |
| Unibail-Rodamco-Westfield | N/A | N/A | N/A | $11.15 | 10.88 |
Realty Income has higher revenue and earnings than Unibail-Rodamco-Westfield. Unibail-Rodamco-Westfield is trading at a lower price-to-earnings ratio than Realty Income, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Realty Income and Unibail-Rodamco-Westfield, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Realty Income | 1 | 8 | 7 | 1 | 2.47 |
| Unibail-Rodamco-Westfield | 0 | 0 | 3 | 0 | 3.00 |
Realty Income currently has a consensus price target of $67.11, indicating a potential upside of 7.04%. Given Realty Income’s higher possible upside, equities analysts plainly believe Realty Income is more favorable than Unibail-Rodamco-Westfield.
Summary
Realty Income beats Unibail-Rodamco-Westfield on 11 of the 15 factors compared between the two stocks.
About Realty Income
Realty Income, The Monthly Dividend Company, is an S&P 500 company and member of the S&P 500 Dividend Aristocrats index. We invest in people and places to deliver dependable monthly dividends that increase over time. The company is structured as a real estate investment trust (“REIT”), and its monthly dividends are supported by the cash flow from over 15,450 real estate properties (including properties acquired in the Spirit merger in January 2024) primarily owned under long-term net lease agreements with commercial clients. To date, the company has declared 644 consecutive monthly dividends on its shares of common stock throughout its 55-year operating history and increased the dividend 123 times since Realty Income’s public listing in 1994 (NYSE: O).
About Unibail-Rodamco-Westfield
Unibail-Rodamco-Westfield is an owner, developer and operator of sustainable, high-quality real estate assets in the most dynamic cities in Europe and the United States. The Group operates 72 shopping centres in 12 countries, including 38 which carry the iconic Westfield brand. These centres attract over 900 million visits annually and provide a unique platform for retailers and brands to connect with consumers. URW also has a portfolio of high-quality offices, 10 convention and exhibition venues in Paris, and a 2.5 Bn development pipeline of mainly mixed-use assets. Its 50 Bn portfolio is 86% in retail, 6% in offices, 5% in convention and exhibition venues, and 2% in services (as at December 31, 2023). URW is a committed partner to major cities on urban regeneration projects, through both mixed-use development and the retrofitting of buildings to industry-leading sustainability standards. These commitments are enhanced by the Group's Better Places plan, which strives to make a positive environmental, social and economic impact on the cities and communities where URW operates. URW's stapled shares are listed on Euronext Paris (Ticker: URW), with a secondary listing in Australia through Chess Depositary Interests. The Group benefits from a BBB+ rating from Standard & Poor's and from a Baa2 rating from Moody's.
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