WallStSmart

Realty Income Corporation (O)vsPhillips Edison & Co Inc (PECO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Realty Income Corporation generates 693% more annual revenue ($5.76B vs $726.59M). O leads profitability with a 18.4% profit margin vs 15.3%. PECO trades at a lower P/E of 41.4x. O earns a higher WallStSmart Score of 64/100 (C+).

O

Buy

64

out of 100

Grade: C+

Growth: 8.0Profit: 6.5Value: 2.0Quality: 4.3
Piotroski: 3/9Altman Z: 0.77

PECO

Buy

56

out of 100

Grade: C

Growth: 5.3Profit: 6.5Value: 7.0Quality: 4.5
Piotroski: 3/9Altman Z: 0.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

OSignificantly Overvalued (-17.8%)

Margin of Safety

-17.8%

Fair Value

$54.76

Current Price

$60.06

$5.30 premium

UndervaluedFair: $54.76Overvalued
PECOUndervalued (+9.5%)

Margin of Safety

+9.5%

Fair Value

$41.65

Current Price

$36.83

$4.82 discount

UndervaluedFair: $41.65Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

PECO2 strengths · Avg: 8.0/10
Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.7%8/10

Strong operational efficiency at 28.7%

Areas to Watch

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

PECO4 concerns · Avg: 3.3/10
EPS GrowthGrowth
1.5%4/10

1.5% earnings growth

Return on EquityProfitability
4.7%3/10

ROE of 4.7% — below average capital efficiency

Debt/EquityHealth
1.093/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : PECO

The strongest argument for PECO centers on Price/Book, Operating Margin. Profitability is solid with margins at 15.3% and operating margin at 28.7%.

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.

Bear Case : PECO

The primary concerns for PECO are EPS Growth, Return on Equity, Debt/Equity. A P/E of 41.4x leaves little room for execution misses.

Key Dynamics to Monitor

O carries more volatility with a beta of 0.77 — 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

O scores higher overall (64/100 vs 56/100), backed by strong 18.4% margins and 11.0% revenue growth. 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.

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.

Phillips Edison & Co Inc

REAL ESTATE · REIT - RETAIL · USA

Phillips Edison & Company, Inc. (PECO) is a leading fully integrated real estate investment trust (REIT) that focuses on the ownership, operation, and development of grocery-anchored shopping centers across the United States. With a diverse portfolio of over 300 strategically positioned properties, PECO leverages favorable demographic trends and strong consumer preferences to drive value creation. The company is dedicated to building robust relationships with national and regional retailers, enhancing tenant stability and fostering sustainable cash flow growth. Committed to delivering long-term shareholder value, PECO emphasizes disciplined capital management and sustainability initiatives in its operational strategies.

Visit Website →

Want to dig deeper into these stocks?