WallStSmart

Federal Realty Investment Trust (FRT)vsRealty Income Corporation (O)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Realty Income Corporation generates 354% more annual revenue ($6.07B vs $1.34B). FRT leads profitability with a 32.7% profit margin vs 20.9%. O appears more attractively valued with a PEG of 3.01. O earns a higher WallStSmart Score of 64/100 (C+).

FRT

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 6.0Quality: 3.5
Piotroski: 2/9Altman Z: 0.54

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

FRTUndervalued (+35.7%)

Margin of Safety

+35.7%

Fair Value

$166.33

Current Price

$110.91

$55.42 discount

UndervaluedFair: $166.33Overvalued
OOvervalued (-5.5%)

Margin of Safety

-5.5%

Fair Value

$61.11

Current Price

$56.66

$4.45 premium

UndervaluedFair: $61.11Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FRT2 strengths · Avg: 10.0/10
Profit MarginProfitability
32.7%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
35.0%10/10

Strong operational efficiency at 35.0%

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

FRT4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.443/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.652/10

Expensive relative to growth rate

EPS GrowthGrowth
-45.6%2/10

Earnings declined 45.6%

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 : FRT

The strongest argument for FRT centers on Profit Margin, Operating Margin. Profitability is solid with margins at 32.7% and operating margin at 35.0%.

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 : FRT

The primary concerns for FRT are Debt/Equity, Piotroski F-Score, PEG Ratio.

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

FRT carries more volatility with a beta of 0.92 — expect wider price swings.

O is growing revenue faster at 9.6% — sustainability is the question.

FRT generates stronger free cash flow (118M), providing more financial flexibility.

Monitor REIT - RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

O scores higher overall (64/100 vs 55/100), backed by strong 20.9% margins. FRT offers better value entry with a 35.7% 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.

Federal Realty Investment Trust

REAL ESTATE · REIT - RETAIL · USA

Federal Realty Investment Trust is a real estate investment trust that invests in shopping centers in the Northeastern United States, the Mid-Atlantic states, California, and South Florida.

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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