CTO Realty Growth (NYSE:CTO – Get Free Report) and Realty Income (NYSE:O – Get Free Report) are both real estate companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.
Analyst Ratings
This is a summary of recent ratings and target prices for CTO Realty Growth and Realty Income, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CTO Realty Growth | 0 | 0 | 5 | 2 | 3.29 |
| Realty Income | 1 | 7 | 8 | 1 | 2.53 |
CTO Realty Growth currently has a consensus price target of $24.50, indicating a potential upside of 11.46%. Realty Income has a consensus price target of $67.42, indicating a potential upside of 7.44%. Given CTO Realty Growth’s stronger consensus rating and higher possible upside, equities research analysts clearly believe CTO Realty Growth is more favorable than Realty Income.
Dividends
Risk and Volatility
CTO Realty Growth has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Realty Income has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.
Institutional & Insider Ownership
67.2% of CTO Realty Growth shares are owned by institutional investors. Comparatively, 70.8% of Realty Income shares are owned by institutional investors. 4.5% of CTO Realty Growth shares are owned by insiders. Comparatively, 0.1% of Realty Income shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares CTO Realty Growth and Realty Income”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CTO Realty Growth | $149.54 million | 5.51 | $10.09 million | $1.36 | 16.16 |
| Realty Income | $5.97 billion | 9.94 | $1.06 billion | $1.37 | 45.80 |
Realty Income has higher revenue and earnings than CTO Realty Growth. CTO Realty Growth is trading at a lower price-to-earnings ratio than Realty Income, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares CTO Realty Growth and Realty Income’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CTO Realty Growth | 32.63% | 8.90% | 4.05% |
| Realty Income | 20.93% | 3.12% | 1.72% |
About CTO Realty Growth
CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.
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).
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