Realty Income Corporation (O)vsSimon Property Group Inc (SPG)
O
Realty Income Corporation
$60.84
+1.82%
REAL ESTATE · Cap: $57.95B
SPG
Simon Property Group Inc
$210.31
+1.98%
REAL ESTATE · Cap: $81.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Simon Property Group Inc generates 12% more annual revenue ($6.65B vs $5.93B). SPG leads profitability with a 70.6% profit margin vs 18.9%. O appears more attractively valued with a PEG of 5.75. SPG earns a higher WallStSmart Score of 63/100 (C+).
O
Buy60
out of 100
Grade: C
SPG
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-5.9%
Fair Value
$60.93
Current Price
$60.84
$0.09 premium
Margin of Safety
-27.7%
Fair Value
$152.48
Current Price
$210.31
$57.83 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 45.5%
Large-cap with strong market position
Every $100 of equity generates 96 in profit
Keeps 71 of every $100 in revenue as profit
Strong operational efficiency at 43.4%
Large-cap with strong market position
Attractively priced relative to earnings
19.3% revenue growth
Areas to Watch
ROE of 2.9% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 14.2x book value
Expensive relative to growth rate
Distress zone — elevated risk
Elevated debt levels
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 18.9% and operating margin at 45.5%. Revenue growth of 12.0% 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 70.6% and operating margin at 43.4%. Revenue growth of 19.3% demonstrates continued momentum.
Bear Case : O
The primary concerns for O are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 50.9x leaves little room for execution misses.
Bear Case : SPG
The primary concerns for SPG are Price/Book, PEG Ratio, Altman Z-Score. Debt-to-equity of 5.96 is elevated, increasing financial risk.
Key Dynamics to Monitor
O profiles as a mature stock while SPG is a growth play — different risk/reward profiles.
SPG carries more volatility with a beta of 1.35 — expect wider price swings.
SPG is growing revenue faster at 19.3% — sustainability is the question.
O generates stronger free cash flow (848M), providing more financial flexibility.
Bottom Line
SPG scores higher overall (63/100 vs 60/100), backed by strong 70.6% margins and 19.3% 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.
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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