Realty Income Corporation (O)vsPhillips Edison & Co Inc (PECO)
O
Realty Income Corporation
$60.06
-0.66%
REAL ESTATE · Cap: $56.58B
PECO
Phillips Edison & Co Inc
$36.83
-0.03%
REAL ESTATE · Cap: $5.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Realty Income Corporation generates 693% more annual revenue ($5.76B vs $726.59M). O leads profitability with a 18.4% profit margin vs 15.3%. PECO trades at a lower P/E of 41.4x. O earns a higher WallStSmart Score of 64/100 (C+).
O
Buy64
out of 100
Grade: C+
PECO
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-17.8%
Fair Value
$54.76
Current Price
$60.06
$5.30 premium
Margin of Safety
+9.5%
Fair Value
$41.65
Current Price
$36.83
$4.82 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 47.0%
Large-cap with strong market position
Earnings expanding 41.2% YoY
Generating 1.2B in free cash flow
Reasonable price relative to book value
Strong operational efficiency at 28.7%
Areas to Watch
ROE of 2.7% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
1.5% earnings growth
ROE of 4.7% — below average capital efficiency
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : PECO
The strongest argument for PECO centers on Price/Book, Operating Margin. Profitability is solid with margins at 15.3% and operating margin at 28.7%.
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.
Bear Case : PECO
The primary concerns for PECO are EPS Growth, Return on Equity, Debt/Equity. A P/E of 41.4x leaves little room for execution misses.
Key Dynamics to Monitor
O carries more volatility with a beta of 0.77 — 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 56/100), 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.
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.
Phillips Edison & Co Inc
REAL ESTATE · REIT - RETAIL · USA
Phillips Edison & Company, Inc. (PECO) is a leading fully integrated real estate investment trust (REIT) that focuses on the ownership, operation, and development of grocery-anchored shopping centers across the United States. With a diverse portfolio of over 300 strategically positioned properties, PECO leverages favorable demographic trends and strong consumer preferences to drive value creation. The company is dedicated to building robust relationships with national and regional retailers, enhancing tenant stability and fostering sustainable cash flow growth. Committed to delivering long-term shareholder value, PECO emphasizes disciplined capital management and sustainability initiatives in its operational strategies.
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