Realty Income Corporation (O)vsSimon Property Group Inc (SPG)
O
Realty Income Corporation
$60.95
-2.70%
REAL ESTATE · Cap: $57.04B
SPG
Simon Property Group Inc
$184.52
-3.55%
REAL ESTATE · Cap: $59.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Simon Property Group Inc generates 10% more annual revenue ($6.36B vs $5.76B). SPG leads profitability with a 72.7% profit margin vs 18.4%. O appears more attractively valued with a PEG of 5.75. SPG earns a higher WallStSmart Score of 67/100 (B-).
O
Buy64
out of 100
Grade: C+
SPG
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-17.8%
Fair Value
$54.76
Current Price
$60.95
$6.19 premium
Margin of Safety
+69.6%
Fair Value
$639.76
Current Price
$184.52
$455.24 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
Every $100 of equity generates 104 in profit
Keeps 73 of every $100 in revenue as profit
Strong operational efficiency at 49.7%
Earnings expanding 358.1% YoY
Large-cap with strong market position
Attractively priced relative to earnings
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
Trading at 11.6x book value
Expensive relative to growth rate
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 : SPG
The strongest argument for SPG centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 72.7% and operating margin at 49.7%. Revenue growth of 13.2% demonstrates continued momentum.
Bear Case : O
The primary concerns for O are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 52.1x leaves little room for execution misses.
Bear Case : SPG
The primary concerns for SPG are Price/Book, PEG Ratio.
Key Dynamics to Monitor
SPG carries more volatility with a beta of 1.40 — expect wider price swings.
SPG is growing revenue faster at 13.2% — 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
SPG scores higher overall (67/100 vs 64/100), backed by strong 72.7% margins and 13.2% revenue growth. 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.
Simon Property Group Inc
REAL ESTATE · REIT - RETAIL · USA
Simon Property Group, Inc. is a real estate investment trust that invests in shopping malls, outlet centers, and community/lifestyle centers. It is the largest owner of shopping malls in the United States and is headquartered in Indianapolis, Indiana.
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