Realty Income Corporation (O)vsPhillips Edison & Co Inc (PECO)
O
Realty Income Corporation
$59.04
-0.77%
REAL ESTATE · Cap: $53.87B
PECO
Phillips Edison & Co Inc
$40.56
-0.83%
REAL ESTATE · Cap: $5.34B
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 Buy66
out of 100
Grade: B-
PECO
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-5.9%
Fair Value
$60.90
Current Price
$59.04
$1.86 premium
Margin of Safety
-29.0%
Fair Value
$29.22
Current Price
$40.56
$11.34 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 47.0%
Earnings expanding 69.2% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Keeps 21 of every $100 in revenue as profit
Earnings expanding 149.9% YoY
Keeps 24 of every $100 in revenue as profit
Reasonable price relative to book value
Strong operational efficiency at 29.9%
Areas to Watch
ROE of 3.3% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Moderate valuation
ROE of 5.1% — 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, 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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