WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Realty Income Corporation generates 702% more annual revenue ($5.93B vs $739.02M). O leads profitability with a 18.9% profit margin vs 15.6%. PECO trades at a lower P/E of 45.6x. O earns a higher WallStSmart Score of 60/100 (C).

O

Buy

60

out of 100

Grade: C

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

PECO

Buy

54

out of 100

Grade: C-

Growth: 6.0Profit: 6.5Value: 3.7Quality: 3.0
Piotroski: 3/9Altman Z: 0.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

OOvervalued (-5.9%)

Margin of Safety

-5.9%

Fair Value

$60.89

Current Price

$60.58

$0.31 premium

UndervaluedFair: $60.89Overvalued
PECOSignificantly Overvalued (-31.1%)

Margin of Safety

-31.1%

Fair Value

$28.75

Current Price

$41.09

$12.34 premium

UndervaluedFair: $28.75Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

O3 strengths · Avg: 9.7/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
45.5%10/10

Strong operational efficiency at 45.5%

Market CapQuality
$57.95B9/10

Large-cap with strong market position

PECO2 strengths · Avg: 9.0/10
Operating MarginProfitability
30.5%10/10

Strong operational efficiency at 30.5%

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Areas to Watch

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
5.752/10

Expensive relative to growth rate

P/E RatioValuation
50.9x2/10

Premium valuation, high expectations priced in

PECO4 concerns · Avg: 2.8/10
Return on EquityProfitability
5.1%3/10

ROE of 5.1% — below average capital efficiency

Debt/EquityHealth
1.153/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
45.6x2/10

Premium valuation, high expectations priced in

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 18.9% and operating margin at 45.5%. Revenue growth of 12.0% demonstrates continued momentum.

Bull Case : PECO

The strongest argument for PECO centers on Operating Margin, Price/Book. Profitability is solid with margins at 15.6% and operating margin at 30.5%.

Bear Case : O

The primary concerns for O are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 50.9x leaves little room for execution misses.

Bear Case : PECO

The primary concerns for PECO are Return on Equity, Debt/Equity, Piotroski F-Score. A P/E of 45.6x leaves little room for execution misses.

Key Dynamics to Monitor

O carries more volatility with a beta of 0.73 — 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 54/100), backed by strong 18.9% margins and 12.0% 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 real estate investment trust (REIT) focused 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 demographic trends and consumer behavior shifts to maximize asset performance and value creation. By cultivating strong partnerships with both national and regional retailers, the company ensures tenant stability and enhances sustainable cash flow growth. PECO is dedicated to delivering long-term shareholder value through prudent capital management and a commitment to sustainability within its operational practices.

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