WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Realty Income Corporation generates 350% more annual revenue ($5.76B vs $1.28B). FRT leads profitability with a 32.1% profit margin vs 18.4%. FRT appears more attractively valued with a PEG of 4.11. FRT earns a higher WallStSmart Score of 66/100 (B-).

FRT

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 7.3Quality: 4.3
Piotroski: 4/9Altman Z: 0.59

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

FRTUndervalued (+49.7%)

Margin of Safety

+49.7%

Fair Value

$212.47

Current Price

$103.15

$109.32 discount

UndervaluedFair: $212.47Overvalued
OSignificantly Overvalued (-17.8%)

Margin of Safety

-17.8%

Fair Value

$54.76

Current Price

$60.95

$6.19 premium

UndervaluedFair: $54.76Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FRT4 strengths · Avg: 9.5/10
Profit MarginProfitability
32.1%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
34.5%10/10

Strong operational efficiency at 34.5%

EPS GrowthGrowth
98.7%10/10

Earnings expanding 98.7% YoY

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

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
$57.04B9/10

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

FRT2 concerns · Avg: 2.0/10
PEG RatioValuation
4.112/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.592/10

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
52.1x2/10

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, EPS Growth. Profitability is solid with margins at 32.1% and operating margin at 34.5%.

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 : FRT

The primary concerns for FRT are PEG Ratio, Altman Z-Score.

Bear Case : O

The primary concerns for O are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 52.1x leaves little room for execution misses.

Key Dynamics to Monitor

FRT carries more volatility with a beta of 1.01 — expect wider price swings.

O is growing revenue faster at 11.0% — sustainability is the question.

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

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

Bottom Line

FRT scores higher overall (66/100 vs 64/100), backed by strong 32.1% margins. Both earn "Strong 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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