NNN REIT, Inc. (NNN) vs Realty Income Corporation (O)

NNN REIT, Inc. and Realty Income Corporation are both Reit Retail companies. Realty Income Corporation is the larger, with a market value of $56.6B against $8.0B — 7.1× the size. NNN REIT, Inc. trades at the lower P/E: 19.6× against 40.2×. Realty Income Corporation grew revenue faster over the last twelve months: 10.8% against 7.33%. NNN REIT, Inc. has the higher net margin (40.9% vs 21.9%) and the higher return on invested capital (4.01% vs 1.16%). Both pay a dividend; NNN REIT, Inc. yields more (5.90% vs 5.47%). Across the 22 metrics below, NNN REIT, Inc. leads on 14 and Realty Income Corporation on 8.

Valuation

Metric NNN O Reit Retail median
P/E 19.63 40.19 24.06
P/S 8.11 9.03 7.25
P/B 1.77 1.32 1.77
Price to free cash flow 312.35 n/m 17.80
EV/EBITDA 14.59 20.87 15.96
EV/Sales 13.24 13.22 10.99
Earnings yield 5.09% 2.49% 4.16%
Free cash flow yield 0.32% (3.51%) 3.05%

Profitability

Metric NNN O Reit Retail median
Gross margin 96.26% 92.59% 71.84%
Operating margin 62.87% 20.48% 36.94%
Net margin 40.89% 21.85% 29.40%
Free cash flow margin 2.60% (31.73%) 21.18%
Return on equity 8.87% 3.31% 7.18%
Return on assets 4.14% 1.82% 3.65%
Return on invested capital 4.01% 1.16% 3.22%

Growth

Metric NNN O Reit Retail median
Revenue growth (TTM) 7.33% 10.79% 8.64%
EPS growth (last fiscal year) (3.72%) 19.39% 16.00%
Revenue growth, 5-year CAGR 6.99% 28.40% 8.62%
Net income growth, 5-year CAGR 13.07% 21.76% 1.85%

Health

Metric NNN O Reit Retail median
Debt to equity 1.10 0.74 0.88
Current ratio 0.58 6.04 1.24
Net debt to EBITDA 5.54 7.98 5.40

Dividend

Metric NNN O Reit Retail median
Dividend yield 5.90% 5.47% 4.14%
Payout ratio 1.16 2.20 1.07

Size

Metric NNN O Reit Retail median
Market cap 7.96b 56.58b 4.04b

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