Realty Income (NYSE:O – Get Free Report) is one of 85 public companies in the “Retail REITs” industry, but how does it weigh in compared to its peers? We will compare Realty Income to related companies based on the strength of its risk, institutional ownership, analyst recommendations, dividends, earnings, profitability and valuation.
Dividends
Realty Income pays an annual dividend of $3.26 per share and has a dividend yield of 5.5%. Realty Income pays out 224.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Retail REITs” companies pay a dividend yield of 231.0% and pay out 78.0% of their earnings in the form of a dividend. Realty Income has raised its dividend for 31 consecutive years. Realty Income lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
Valuation & Earnings
This table compares Realty Income and its peers top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Realty Income | $5.75 billion | $1.06 billion | 41.01 |
| Realty Income Competitors | $819.32 million | $253.68 million | 9.41 |
Realty Income has higher revenue and earnings than its peers. Realty Income is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Realty Income and its peers, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Realty Income | 1 | 9 | 5 | 3 | 2.56 |
| Realty Income Competitors | 962 | 3972 | 3445 | 137 | 2.32 |
Realty Income presently has a consensus target price of $71.51, suggesting a potential upside of 20.26%. As a group, “Retail REITs” companies have a potential upside of 9.48%. Given Realty Income’s stronger consensus rating and higher probable upside, research analysts clearly believe Realty Income is more favorable than its peers.
Insider & Institutional Ownership
70.8% of Realty Income shares are held by institutional investors. Comparatively, 59.3% of shares of all “Retail REITs” companies are held by institutional investors. 0.1% of Realty Income shares are held by company insiders. Comparatively, 11.4% of shares of all “Retail REITs” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Realty Income has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Realty Income’s peers have a beta of 0.88, suggesting that their average share price is 12% less volatile than the S&P 500.
Profitability
This table compares Realty Income and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Realty Income | 21.85% | 3.27% | 1.80% |
| Realty Income Competitors | 31.33% | 6.25% | 3.34% |
Summary
Realty Income peers beat Realty Income on 8 of the 15 factors compared.
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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