WallStSmart

Realty Income Corporation (O)vsPhillips Edison & Co Inc (PECO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Realty Income Corporation generates 697% more annual revenue ($6.07B vs $761.31M). PECO leads profitability with a 23.9% profit margin vs 20.9%. PECO trades at a lower P/E of 26.4x. O earns a higher WallStSmart Score of 66/100 (B-).

O

Strong Buy

66

out of 100

Grade: B-

Growth: 8.0Profit: 6.5Value: 3.3Quality: 5.5
Piotroski: 3/9Altman Z: 0.64

PECO

Buy

60

out of 100

Grade: C+

Growth: 7.3Profit: 6.5Value: 4.3Quality: 3.0
Piotroski: 3/9Altman Z: 0.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

OOvervalued (-5.9%)

Margin of Safety

-5.9%

Fair Value

$60.90

Current Price

$59.04

$1.86 premium

UndervaluedFair: $60.90Overvalued
PECOSignificantly Overvalued (-29.0%)

Margin of Safety

-29.0%

Fair Value

$29.22

Current Price

$40.56

$11.34 premium

UndervaluedFair: $29.22Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

O6 strengths · Avg: 9.7/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
47.0%10/10

Strong operational efficiency at 47.0%

EPS GrowthGrowth
69.2%10/10

Earnings expanding 69.2% YoY

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Market CapQuality
$53.87B9/10

Large-cap with strong market position

Profit MarginProfitability
20.9%9/10

Keeps 21 of every $100 in revenue as profit

PECO4 strengths · Avg: 8.8/10
EPS GrowthGrowth
149.9%10/10

Earnings expanding 149.9% YoY

Profit MarginProfitability
23.9%9/10

Keeps 24 of every $100 in revenue as profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.9%8/10

Strong operational efficiency at 29.9%

Areas to Watch

O4 concerns · Avg: 2.5/10
Return on EquityProfitability
3.3%3/10

ROE of 3.3% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.872/10

Expensive relative to growth rate

P/E RatioValuation
41.3x2/10

Premium valuation, high expectations priced in

PECO4 concerns · Avg: 3.3/10
P/E RatioValuation
26.4x4/10

Moderate valuation

Return on EquityProfitability
5.1%3/10

ROE of 5.1% — below average capital efficiency

Debt/EquityHealth
1.053/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : O

The strongest argument for O centers on Price/Book, Operating Margin, EPS Growth. Profitability is solid with margins at 20.9% and operating margin at 47.0%.

Bull Case : PECO

The strongest argument for PECO centers on EPS Growth, Profit Margin, Price/Book. Profitability is solid with margins at 23.9% and operating margin at 29.9%.

Bear Case : O

The primary concerns for O are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 41.3x leaves little room for execution misses.

Bear Case : PECO

The primary concerns for PECO are P/E Ratio, Return on Equity, Debt/Equity.

Key Dynamics to Monitor

O carries more volatility with a beta of 0.70 — expect wider price swings.

O is growing revenue faster at 9.6% — sustainability is the question.

PECO generates stronger free cash flow (48M), providing more financial flexibility.

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

Bottom Line

O scores higher overall (66/100 vs 60/100), backed by strong 20.9% margins. Both earn "Strong 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 prominent real estate investment trust (REIT) specializing in the acquisition, management, and development of grocery-anchored shopping centers throughout the United States. With over 300 strategically located properties, PECO effectively capitalizes on demographic trends and evolving consumer behaviors to optimize asset performance and enhance shareholder value. The company maintains robust relationships with both national and regional tenants, providing a stable cash flow while adhering to disciplined capital management and sustainability practices that reinforce its commitment to responsible operations and long-term returns for investors.

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