Macerich Company (The) (MAC) vs Realty Income Corporation (O)

Macerich Company (The) and Realty Income Corporation are both Reit Retail companies. Realty Income Corporation is the larger, with a market value of $52.5B against $6.7B — 7.9× the size. Macerich Company (The) has negative trailing earnings, so its P/E is not meaningful; Realty Income Corporation trades at 40.5×. Realty Income Corporation grew revenue faster over the last twelve months: 10.9% against 1.34%. Realty Income Corporation has the higher net margin (20.9% vs −16.9%) and the lower return on invested capital (1.13% vs 1.38%). Both pay a dividend; Realty Income Corporation yields more (5.74% vs 4.07%). Across the 21 metrics below, Realty Income Corporation leads on 15 and Macerich Company (The) on 6.

Valuation

Metric MAC O Reit Retail median
P/E n/m 40.54 24.82
P/S 6.16 8.55 6.69
P/B 2.13 1.23 1.75
Price to free cash flow n/m n/m 13.29
EV/EBITDA 19.02 19.99 15.42
EV/Sales 10.67 12.72 10.60
Earnings yield (2.87%) 2.47% 3.91%
Free cash flow yield (1.63%) (2.12%) 2.98%

Profitability

Metric MAC O Reit Retail median
Gross margin 53.96% 92.67% 71.78%
Operating margin 16.30% 20.11% 34.62%
Net margin (16.85%) 20.93% 27.14%
Free cash flow margin (10.04%) (18.16%) 18.82%
Return on equity (6.09%) 3.12% 7.05%
Return on assets (1.97%) 1.71% 3.40%
Return on invested capital 1.38% 1.13% 3.18%

Growth

Metric MAC O Reit Retail median
Revenue growth (TTM) 1.34% 10.85% 8.49%
EPS growth (last fiscal year) 11.36% 19.39% —
Revenue growth, 5-year CAGR 5.22% 28.40% 8.62%
Net income growth, 5-year CAGR 0.00% 21.76% 1.85%

Health

Metric MAC O Reit Retail median
Debt to equity 1.67 0.73 0.94
Current ratio 0.88 5.88 1.62
Net debt to EBITDA 8.03 7.98 5.40

Dividend

Metric MAC O Reit Retail median
Dividend yield 4.07% 5.74% 4.57%
Payout ratio 2.50 2.25 1.21

Size

Metric MAC O Reit Retail median
Market cap 6.68b 52.53b 3.65b

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