Realty Income Corporation (O)vsTanger Factory Outlet Centers Inc (SKT)
O
Realty Income Corporation
$56.53
-0.21%
REAL ESTATE · Cap: $56.30B
SKT
Tanger Factory Outlet Centers Inc
$35.60
-0.17%
REAL ESTATE · Cap: $4.26B
Smart Verdict
WallStSmart Research — data-driven comparison
Realty Income Corporation generates 866% more annual revenue ($6.07B vs $627.75M). O leads profitability with a 20.9% profit margin vs 20.2%. O appears more attractively valued with a PEG of 3.01. O earns a higher WallStSmart Score of 64/100 (C+).
O
Buy64
out of 100
Grade: C+
SKT
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-5.5%
Fair Value
$61.11
Current Price
$56.53
$4.58 premium
Margin of Safety
+36.4%
Fair Value
$53.21
Current Price
$35.60
$17.61 discount
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
Strong operational efficiency at 32.6%
Keeps 20 of every $100 in revenue as profit
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
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Distress zone — elevated risk
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 : SKT
The strongest argument for SKT centers on Operating Margin, Profit Margin. Profitability is solid with margins at 20.2% and operating margin at 32.6%. Revenue growth of 11.5% demonstrates continued momentum.
Bear Case : O
The primary concerns for O are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 43.4x leaves little room for execution misses.
Bear Case : SKT
The primary concerns for SKT are P/E Ratio, Piotroski F-Score, PEG Ratio. Debt-to-equity of 2.76 is elevated, increasing financial risk.
Key Dynamics to Monitor
SKT carries more volatility with a beta of 1.08 — expect wider price swings.
SKT is growing revenue faster at 11.5% — sustainability is the question.
SKT generates stronger free cash flow (73M), providing more financial flexibility.
Monitor REIT - RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
O scores higher overall (64/100 vs 61/100), backed by strong 20.9% margins. SKT offers better value entry with a 36.4% margin of safety. 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.
Tanger Factory Outlet Centers Inc
REAL ESTATE · REIT - RETAIL · USA
Tanger Factory Outlet Centers, Inc. (NYSE: SKT) is a leading operator of luxury outdoor outlet shopping centers that owns or has an ownership interest in a portfolio of 38 centers.
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