WallStSmart

Kite Realty Group Trust (KRG)vsRealty Income Corporation (O)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Realty Income Corporation generates 582% more annual revenue ($5.76B vs $844.37M). KRG leads profitability with a 35.4% profit margin vs 18.4%. KRG appears more attractively valued with a PEG of 3.14. O earns a higher WallStSmart Score of 64/100 (C+).

KRG

Buy

61

out of 100

Grade: C+

Growth: 4.0Profit: 7.0Value: 7.3Quality: 4.3
Piotroski: 4/9Altman Z: 0.64

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

KRGUndervalued (+61.5%)

Margin of Safety

+61.5%

Fair Value

$64.12

Current Price

$24.26

$39.86 discount

UndervaluedFair: $64.12Overvalued
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

KRG4 strengths · Avg: 8.5/10
Profit MarginProfitability
35.4%10/10

Keeps 35 of every $100 in revenue as profit

P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.2%8/10

Strong operational efficiency at 23.2%

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

KRG3 concerns · Avg: 2.0/10
PEG RatioValuation
3.142/10

Expensive relative to growth rate

Revenue GrowthGrowth
-3.8%2/10

Revenue declined 3.8%

Altman Z-ScoreHealth
0.642/10

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 : KRG

The strongest argument for KRG centers on Profit Margin, P/E Ratio, Price/Book. Profitability is solid with margins at 35.4% and operating margin at 23.2%.

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 : KRG

The primary concerns for KRG are PEG Ratio, Revenue Growth, Altman Z-Score.

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

KRG profiles as a declining stock while O is a mature play — different risk/reward profiles.

KRG carries more volatility with a beta of 0.87 — 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.

Bottom Line

O scores higher overall (64/100 vs 61/100), backed by strong 18.4% margins and 11.0% revenue growth. KRG offers better value entry with a 61.5% 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.

Kite Realty Group Trust

REAL ESTATE · REIT - RETAIL · USA

Kite Realty Group Trust is a vertically integrated, full-service real estate investment trust (REIT) that provides communities with convenient and beneficial shopping experiences.

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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