WallStSmart

National Retail Properties Inc (NNN)vsRealty Income Corporation (O)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Realty Income Corporation generates 522% more annual revenue ($5.76B vs $926.21M). NNN leads profitability with a 42.1% profit margin vs 18.4%. NNN appears more attractively valued with a PEG of 4.80. O earns a higher WallStSmart Score of 64/100 (C+).

NNN

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.0Value: 4.7Quality: 3.3
Piotroski: 3/9Altman Z: 0.78

O

Buy

64

out of 100

Grade: C+

Growth: 8.0Profit: 6.5Value: 2.0Quality: 4.3
Piotroski: 3/9Altman Z: 0.77
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NNNSignificantly Overvalued (-206.0%)

Margin of Safety

-206.0%

Fair Value

$14.08

Current Price

$41.99

$27.91 premium

UndervaluedFair: $14.08Overvalued
OSignificantly Overvalued (-17.8%)

Margin of Safety

-17.8%

Fair Value

$54.76

Current Price

$60.06

$5.30 premium

UndervaluedFair: $54.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NNN3 strengths · Avg: 9.3/10
Profit MarginProfitability
42.1%10/10

Keeps 42 of every $100 in revenue as profit

Operating MarginProfitability
62.2%10/10

Strong operational efficiency at 62.2%

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

O5 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
47.0%10/10

Strong operational efficiency at 47.0%

Market CapQuality
$56.58B9/10

Large-cap with strong market position

EPS GrowthGrowth
41.2%8/10

Earnings expanding 41.2% YoY

Free Cash FlowQuality
$1.15B8/10

Generating 1.2B in free cash flow

Areas to Watch

NNN4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.802/10

Expensive relative to growth rate

EPS GrowthGrowth
-2.2%2/10

Earnings declined 2.2%

Free Cash FlowQuality
$-810.91M2/10

Negative free cash flow — burning cash

O4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.7%3/10

ROE of 2.7% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
5.752/10

Expensive relative to growth rate

P/E RatioValuation
51.7x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : NNN

The strongest argument for NNN centers on Profit Margin, Operating Margin, Price/Book. Profitability is solid with margins at 42.1% and operating margin at 62.2%.

Bull Case : O

The strongest argument for O centers on Price/Book, Operating Margin, Market Cap. Profitability is solid with margins at 18.4% and operating margin at 47.0%. Revenue growth of 11.0% demonstrates continued momentum.

Bear Case : NNN

The primary concerns for NNN are Piotroski F-Score, PEG Ratio, EPS Growth.

Bear Case : O

The primary concerns for O are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 51.7x leaves little room for execution misses.

Key Dynamics to Monitor

NNN carries more volatility with a beta of 0.82 — expect wider price swings.

O is growing revenue faster at 11.0% — sustainability is the question.

O generates stronger free cash flow (1.2B), providing more financial flexibility.

Monitor REIT - RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

O scores higher overall (64/100 vs 54/100), backed by strong 18.4% margins and 11.0% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

National Retail Properties Inc

REAL ESTATE · REIT - RETAIL · USA

National Retail Properties invests primarily in high-quality retail properties generally subject to long-term net leases.

Realty Income Corporation

REAL ESTATE · REIT - RETAIL · USA

Realty Income Corporation is a real estate investment trust that invests in free-standing, single-tenant commercial properties in the United States, Puerto Rico, and the United Kingdom that are subject to NNN Leases. The company is organized in Maryland with its headquarters in San Diego, California.

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