Realty Income Corporation (O) vs Simon Property Group, Inc. (SPG)

Realty Income Corporation and Simon Property Group, Inc. are both Reit Retail companies. Simon Property Group, Inc. is the larger, with a market value of $71.7B against $52.5B — 1.4× the size. Simon Property Group, Inc. trades at the lower P/E: 14.4× against 40.5×. Simon Property Group, Inc. grew revenue faster over the last twelve months: 15.0% against 10.9%. Simon Property Group, Inc. has the higher net margin (66.5% vs 20.9%) and the higher return on invested capital (6.18% vs 1.13%). Both pay a dividend; Realty Income Corporation yields more (5.74% vs 5.40%). Across the 22 metrics below, Simon Property Group, Inc. leads on 14 and Realty Income Corporation on 8.

Valuation

Metric O SPG Reit Retail median
P/E 40.54 14.44 24.82
P/S 8.55 9.56 6.69
P/B 1.23 11.99 1.75
Price to free cash flow n/m 20.63 13.29
EV/EBITDA 19.99 18.26 15.42
EV/Sales 12.72 13.55 10.60
Earnings yield 2.47% 6.92% 3.91%
Free cash flow yield (2.12%) 4.85% 2.98%

Profitability

Metric O SPG Reit Retail median
Gross margin 92.67% 81.43% 71.78%
Operating margin 20.11% 47.40% 34.62%
Net margin 20.93% 66.52% 27.14%
Free cash flow margin (18.16%) 46.36% 18.82%
Return on equity 3.12% 110.70% 7.05%
Return on assets 1.71% 12.65% 3.40%
Return on invested capital 1.13% 6.18% 3.18%

Growth

Metric O SPG Reit Retail median
Revenue growth (TTM) 10.85% 15.02% 8.49%
EPS growth (last fiscal year) 19.39% 95.18% —
Revenue growth, 5-year CAGR 28.40% 6.67% 8.62%
Net income growth, 5-year CAGR 21.76% 33.05% 1.85%

Health

Metric O SPG Reit Retail median
Debt to equity 0.73 5.15 0.94
Current ratio 5.88 1.05 1.62
Net debt to EBITDA 7.98 5.84 5.40

Dividend

Metric O SPG Reit Retail median
Dividend yield 5.74% 5.40% 4.57%
Payout ratio 2.25 1.09 1.21

Size

Metric O SPG Reit Retail median
Market cap 52.53b 71.72b 3.65b

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