WallStSmart

Essential Properties Realty Trust Inc (EPRT)vsRealty Income Corporation (O)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Realty Income Corporation generates 927% more annual revenue ($5.76B vs $561.22M). EPRT leads profitability with a 45.1% profit margin vs 18.4%. EPRT trades at a lower P/E of 24.5x. O earns a higher WallStSmart Score of 64/100 (C+).

EPRT

Buy

62

out of 100

Grade: C+

Growth: 8.0Profit: 7.5Value: 6.3Quality: 7.0
Piotroski: 3/9Altman Z: 1.28

O

Buy

64

out of 100

Grade: C+

Growth: 8.0Profit: 6.5Value: 2.0Quality: 4.3
Piotroski: 3/9Altman Z: 0.77
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EPRTFair Value (-1.1%)

Margin of Safety

-1.1%

Fair Value

$31.19

Current Price

$30.69

$0.50 premium

UndervaluedFair: $31.19Overvalued
OSignificantly Overvalued (-17.8%)

Margin of Safety

-17.8%

Fair Value

$54.76

Current Price

$60.06

$5.30 premium

UndervaluedFair: $54.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EPRT4 strengths · Avg: 9.0/10
Profit MarginProfitability
45.1%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
65.6%10/10

Strong operational efficiency at 65.6%

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
25.2%8/10

Revenue surging 25.2% year-over-year

O5 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
47.0%10/10

Strong operational efficiency at 47.0%

Market CapQuality
$56.58B9/10

Large-cap with strong market position

EPS GrowthGrowth
41.2%8/10

Earnings expanding 41.2% YoY

Free Cash FlowQuality
$1.15B8/10

Generating 1.2B in free cash flow

Areas to Watch

EPRT4 concerns · Avg: 2.5/10
Return on EquityProfitability
6.5%3/10

ROE of 6.5% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-165.37M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.282/10

Distress zone — elevated risk

O4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.7%3/10

ROE of 2.7% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
5.752/10

Expensive relative to growth rate

P/E RatioValuation
51.7x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : EPRT

The strongest argument for EPRT centers on Profit Margin, Operating Margin, Price/Book. Profitability is solid with margins at 45.1% and operating margin at 65.6%. Revenue growth of 25.2% demonstrates continued momentum.

Bull Case : O

The strongest argument for O centers on Price/Book, Operating Margin, Market Cap. Profitability is solid with margins at 18.4% and operating margin at 47.0%. Revenue growth of 11.0% demonstrates continued momentum.

Bear Case : EPRT

The primary concerns for EPRT are Return on Equity, Piotroski F-Score, Free Cash Flow.

Bear Case : O

The primary concerns for O are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 51.7x leaves little room for execution misses.

Key Dynamics to Monitor

EPRT profiles as a growth stock while O is a mature play — different risk/reward profiles.

EPRT carries more volatility with a beta of 0.99 — expect wider price swings.

EPRT is growing revenue faster at 25.2% — sustainability is the question.

O generates stronger free cash flow (1.2B), providing more financial flexibility.

Bottom Line

O scores higher overall (64/100 vs 62/100), backed by strong 18.4% margins and 11.0% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Essential Properties Realty Trust Inc

REAL ESTATE · REIT - RETAIL · USA

Essential Properties Realty Trust, Inc., a real estate company, acquires, owns and manages single-tenant properties in the United States. The company is headquartered in Princeton, New Jersey.

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Realty Income Corporation

REAL ESTATE · REIT - RETAIL · USA

Realty Income Corporation is a real estate investment trust that invests in free-standing, single-tenant commercial properties in the United States, Puerto Rico, and the United Kingdom that are subject to NNN Leases. The company is organized in Maryland with its headquarters in San Diego, California.

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