Realty Income Corporation (NYSE: O) is one of 76 publicly-traded companies in the “Commercial REITs” industry, but how does it weigh in compared to its rivals? We will compare Realty Income Corporation to similar businesses based on the strength of its dividends, analyst recommendations, profitability, institutional ownership, earnings, risk and valuation.

Institutional and Insider Ownership

67.2% of Realty Income Corporation shares are owned by institutional investors. Comparatively, 71.6% of shares of all “Commercial REITs” companies are owned by institutional investors. 0.3% of Realty Income Corporation shares are owned by company insiders. Comparatively, 7.5% of shares of all “Commercial REITs” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Realty Income Corporation 1 5 3 0 2.22
Realty Income Corporation Competitors 654 2580 2201 24 2.29

Realty Income Corporation currently has a consensus price target of $69.25, suggesting a potential upside of 22.61%. As a group, “Commercial REITs” companies have a potential upside of 9.09%. Given Realty Income Corporation’s higher possible upside, research analysts clearly believe Realty Income Corporation is more favorable than its rivals.

Profitability

This table compares Realty Income Corporation and its rivals’ 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 55.29% 5.96% 3.87%

Valuation and Earnings

This table compares Realty Income Corporation and its rivals 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 299.43

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

Risk & Volatility

Realty Income Corporation has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500. Comparatively, Realty Income Corporation’s rivals have a beta of 0.79, indicating that their average stock price is 21% less volatile than the S&P 500.

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 3.9% and pay out 185.3% of their earnings in the form of a dividend. Realty Income Corporation has increased its dividend for 21 consecutive years.

Summary

Realty Income Corporation rivals 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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