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 $52.6B against $7.9B — 6.7× the size. NNN REIT, Inc. trades at the lower P/E: 20.4× against 40.9×. Realty Income Corporation grew revenue faster over the last twelve months: 10.9% against 6.54%. NNN REIT, Inc. has the higher net margin (40.4% vs 20.9%) and the higher return on invested capital (3.92% vs 1.13%). Both pay a dividend; NNN REIT, Inc. yields more (5.83% vs 5.79%). 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 20.36 40.92 25.89
P/S 8.24 8.63 6.86
P/B 1.76 1.25 1.73
Price to free cash flow n/m n/m 14.23
EV/EBITDA 14.56 20.11 15.33
EV/Sales 13.48 12.80 10.49
Earnings yield 4.91% 2.44% 3.87%
Free cash flow yield (0.53%) (2.10%) 2.98%

Profitability

Metric NNN O Reit Retail median
Gross margin 96.09% 92.67% 71.78%
Operating margin 62.30% 20.11% 34.62%
Net margin 40.35% 20.93% 27.14%
Free cash flow margin (4.37%) (18.16%) 18.82%
Return on equity 8.72% 3.12% 7.05%
Return on assets 4.10% 1.71% 3.40%
Return on invested capital 3.92% 1.13% 3.18%

Growth

Metric NNN O Reit Retail median
Revenue growth (TTM) 6.54% 10.85% 8.49%
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 1.12 0.73 0.94
Current ratio 1.15 5.88 1.62
Net debt to EBITDA 5.54 7.98 5.40

Dividend

Metric NNN O Reit Retail median
Dividend yield 5.83% 5.79% 4.45%
Payout ratio 1.19 2.37 1.21

Size

Metric NNN O Reit Retail median
Market cap 7.90b 52.56b 3.56b

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