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 $52.6B against $6.8B — 7.7× the size. Macerich Company (The) has negative trailing earnings, so its P/E is not meaningful; Realty Income Corporation trades at 40.9×. 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 (5.79% vs 2.96%). 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 40.92 25.89
P/S 6.25 8.63 6.86
P/B 2.16 1.25 1.73
Price to free cash flow n/m n/m 14.23
EV/EBITDA 19.17 20.11 15.33
EV/Sales 10.75 12.80 10.49
Earnings yield (2.83%) 2.44% 3.87%
Free cash flow yield (1.61%) (2.10%) 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% 16.00%
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 2.96% 5.79% 4.45%
Payout ratio — 2.37 1.21

Size

Metric MAC O Reit Retail median
Market cap 6.81b 52.56b 3.56b

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