Analyzing Unibail-Rodamco-Westfield (OTCMKTS:UNBLF) and Realty Income (NYSE:O)

Unibail-Rodamco-Westfield (OTCMKTS:UNBLF) and Realty Income (NYSE:O) are both real estate companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Institutional & Insider Ownership

41.2% of Unibail-Rodamco-Westfield shares are owned by institutional investors. Comparatively, 70.8% of Realty Income shares are owned by institutional investors. 0.1% of Realty Income shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Unibail-Rodamco-Westfield pays an annual dividend of $8.90 per share and has a dividend yield of 7.3%. Realty Income pays an annual dividend of $3.25 per share and has a dividend yield of 5.2%. 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 pays out 237.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Profitability

This table compares Unibail-Rodamco-Westfield and Realty Income’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Unibail-Rodamco-Westfield	N/A	N/A	N/A
Realty Income	20.93%	3.12%	1.72%

Earnings & Valuation

This table compares Unibail-Rodamco-Westfield and Realty Income”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Unibail-Rodamco-Westfield	N/A	N/A	N/A	$11.15	10.88
Realty Income	$5.75 billion	10.14	$1.06 billion	$1.37	45.63

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 Recommendations

This is a breakdown of current ratings for Unibail-Rodamco-Westfield and Realty Income, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Unibail-Rodamco-Westfield	0	0	3	0	3.00
Realty Income	1	7	8	1	2.53

Realty Income has a consensus target price of $67.42, indicating a potential upside of 7.85%. Given Realty Income’s higher probable upside, 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 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.

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).