WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Realty Income Corporation generates 885% more annual revenue ($6.07B vs $615.49M). EPRT leads profitability with a 43.5% profit margin vs 20.9%. EPRT trades at a lower P/E of 22.9x. O earns a higher WallStSmart Score of 64/100 (C+).

EPRT

Buy

58

out of 100

Grade: C

Growth: 8.0Profit: 7.5Value: 6.3Quality: 6.0
Piotroski: 3/9Altman Z: 1.28

O

Buy

64

out of 100

Grade: C+

Growth: 8.0Profit: 6.5Value: 3.3Quality: 5.5
Piotroski: 3/9Altman Z: 0.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EPRTUndervalued (+28.7%)

Margin of Safety

+28.7%

Fair Value

$44.25

Current Price

$28.79

$15.46 discount

UndervaluedFair: $44.25Overvalued
OOvervalued (-5.5%)

Margin of Safety

-5.5%

Fair Value

$61.16

Current Price

$59.50

$1.66 premium

UndervaluedFair: $61.16Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EPRT4 strengths · Avg: 9.5/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Profit MarginProfitability
43.5%10/10

Keeps 44 of every $100 in revenue as profit

Operating MarginProfitability
62.5%10/10

Strong operational efficiency at 62.5%

Revenue GrowthGrowth
18.1%8/10

18.1% revenue growth

O6 strengths · Avg: 9.7/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
47.0%10/10

Strong operational efficiency at 47.0%

EPS GrowthGrowth
69.2%10/10

Earnings expanding 69.2% YoY

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Market CapQuality
$56.30B9/10

Large-cap with strong market position

Profit MarginProfitability
20.9%9/10

Keeps 21 of every $100 in revenue as profit

Areas to Watch

EPRT4 concerns · Avg: 2.5/10
Return on EquityProfitability
5.8%3/10

ROE of 5.8% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-200.80M2/10

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
3.3%3/10

ROE of 3.3% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.012/10

Expensive relative to growth rate

P/E RatioValuation
43.4x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : EPRT

The strongest argument for EPRT centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 43.5% and operating margin at 62.5%. Revenue growth of 18.1% demonstrates continued momentum.

Bull Case : O

The strongest argument for O centers on Price/Book, Operating Margin, EPS Growth. Profitability is solid with margins at 20.9% and operating margin at 47.0%.

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 43.4x 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 0.87 — expect wider price swings.

EPRT is growing revenue faster at 18.1% — sustainability is the question.

EPRT generates stronger free cash flow (-201M), providing more financial flexibility.

Bottom Line

O scores higher overall (64/100 vs 58/100), backed by strong 20.9% margins. EPRT offers better value entry with a 28.7% margin of safety. 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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