WallStSmart

NNN REIT, Inc. (NNN)vsRealty Income Corporation (O)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Realty Income Corporation generates 534% more annual revenue ($5.93B vs $935.78M). NNN leads profitability with a 41.4% profit margin vs 18.9%. NNN appears more attractively valued with a PEG of 4.80. O earns a higher WallStSmart Score of 60/100 (C).

NNN

Hold

50

out of 100

Grade: D+

Growth: 4.0Profit: 8.0Value: 6.0Quality: 3.0
Piotroski: 2/9Altman Z: 0.67

O

Buy

60

out of 100

Grade: C

Growth: 7.3Profit: 6.5Value: 3.3Quality: 3.5
Piotroski: 3/9Altman Z: 0.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NNNUndervalued (+39.4%)

Margin of Safety

+39.4%

Fair Value

$71.14

Current Price

$44.96

$26.18 discount

UndervaluedFair: $71.14Overvalued
OOvervalued (-5.9%)

Margin of Safety

-5.9%

Fair Value

$60.93

Current Price

$60.84

$0.09 premium

UndervaluedFair: $60.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NNN3 strengths · Avg: 9.3/10
Profit MarginProfitability
41.4%10/10

Keeps 41 of every $100 in revenue as profit

Operating MarginProfitability
60.6%10/10

Strong operational efficiency at 60.6%

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

O3 strengths · Avg: 9.7/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
45.5%10/10

Strong operational efficiency at 45.5%

Market CapQuality
$55.69B9/10

Large-cap with strong market position

Areas to Watch

NNN4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

Debt/EquityHealth
1.103/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
4.802/10

Expensive relative to growth rate

O4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.9%3/10

ROE of 2.9% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
5.682/10

Expensive relative to growth rate

P/E RatioValuation
49.0x2/10

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 41.4% and operating margin at 60.6%.

Bull Case : O

The strongest argument for O centers on Price/Book, Operating Margin, Market Cap. Profitability is solid with margins at 18.9% and operating margin at 45.5%. Revenue growth of 12.0% demonstrates continued momentum.

Bear Case : NNN

The primary concerns for NNN are Revenue Growth, Debt/Equity, Piotroski F-Score.

Bear Case : O

The primary concerns for O are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 49.0x leaves little room for execution misses.

Key Dynamics to Monitor

NNN profiles as a value stock while O is a mature play — different risk/reward profiles.

NNN carries more volatility with a beta of 0.79 — expect wider price swings.

O is growing revenue faster at 12.0% — sustainability is the question.

O generates stronger free cash flow (848M), providing more financial flexibility.

Bottom Line

O scores higher overall (60/100 vs 50/100), backed by strong 18.9% margins and 12.0% revenue growth. NNN offers better value entry with a 39.4% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

NNN REIT, 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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