WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Realty Income Corporation generates 344% more annual revenue ($5.93B vs $1.34B). FRT leads profitability with a 32.7% profit margin vs 18.9%. O appears more attractively valued with a PEG of 3.03. O earns a higher WallStSmart Score of 60/100 (C).

FRT

Buy

53

out of 100

Grade: C-

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

O

Buy

60

out of 100

Grade: C

Growth: 7.3Profit: 6.5Value: 2.7Quality: 3.5
Piotroski: 3/9Altman Z: 0.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FRTUndervalued (+36.2%)

Margin of Safety

+36.2%

Fair Value

$167.60

Current Price

$121.83

$45.77 discount

UndervaluedFair: $167.60Overvalued
OOvervalued (-6.1%)

Margin of Safety

-6.1%

Fair Value

$60.79

Current Price

$62.70

$1.91 premium

UndervaluedFair: $60.79Overvalued

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%

O3 strengths · Avg: 9.7/10
Price/BookValuation
1.5x10/10

Reasonable price relative to book value

Operating MarginProfitability
45.5%10/10

Strong operational efficiency at 45.5%

Market CapQuality
$58.65B9/10

Large-cap with strong market position

Areas to Watch

FRT4 concerns · Avg: 3.0/10
P/E RatioValuation
25.1x4/10

Moderate valuation

Debt/EquityHealth
1.493/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.652/10

Expensive relative to growth rate

O4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.9%3/10

ROE of 2.9% — below average capital efficiency

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.032/10

Expensive relative to growth rate

P/E RatioValuation
51.6x2/10

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, Market Cap. Profitability is solid with margins at 18.9% and operating margin at 45.5%. Revenue growth of 12.0% demonstrates continued momentum.

Bear Case : FRT

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

Bear Case : O

The primary concerns for O are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 51.6x leaves little room for execution misses.

Key Dynamics to Monitor

FRT carries more volatility with a beta of 0.93 — expect wider price swings.

O is growing revenue faster at 12.0% — sustainability is the question.

O generates stronger free cash flow (848M), providing more financial flexibility.

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

Bottom Line

O scores higher overall (60/100 vs 53/100), backed by strong 18.9% margins and 12.0% revenue growth. FRT offers better value entry with a 36.2% 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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