Reviewing Realty Income (NYSE:O) & EPR Properties (NYSE:EPR)

Realty Income (NYSE:OGet Rating) and EPR Properties (NYSE:EPRGet Rating) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and target prices for Realty Income and EPR Properties, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Realty Income 0 3 5 0 2.63
EPR Properties 0 3 0 1 2.50

Realty Income currently has a consensus target price of $77.80, suggesting a potential upside of 15.41%. EPR Properties has a consensus target price of $58.38, suggesting a potential upside of 16.31%. Given EPR Properties’ higher possible upside, analysts plainly believe EPR Properties is more favorable than Realty Income.

Dividends

Realty Income pays an annual dividend of $2.96 per share and has a dividend yield of 4.4%. EPR Properties pays an annual dividend of $3.30 per share and has a dividend yield of 6.6%. Realty Income pays out 290.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EPR Properties pays out 218.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Realty Income has increased its dividend for 28 consecutive years and EPR Properties has increased its dividend for 1 consecutive years. EPR Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

76.5% of Realty Income shares are held by institutional investors. Comparatively, 78.4% of EPR Properties shares are held by institutional investors. 0.2% of Realty Income shares are held by company insiders. Comparatively, 1.8% of EPR Properties shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Realty Income and EPR Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Realty Income 18.91% 2.44% 1.39%
EPR Properties 23.80% 5.23% 2.34%

Valuation & Earnings

This table compares Realty Income and EPR Properties’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Realty Income $2.08 billion 19.49 $359.46 million $1.02 66.09
EPR Properties $531.68 million 7.08 $98.61 million $1.51 33.24

Realty Income has higher revenue and earnings than EPR Properties. EPR Properties is trading at a lower price-to-earnings ratio than Realty Income, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Realty Income has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, EPR Properties has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.

Summary

EPR Properties beats Realty Income on 11 of the 18 factors compared between the two stocks.

Realty Income Company Profile (Get Rating)

Realty Income, The Monthly Dividend Company, is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 6,500 real estate properties owned under long-term lease agreements with our commercial clients. To date, the company has declared 608 consecutive common stock monthly dividends throughout its 52-year operating history and increased the dividend 109 times since Realty Income's public listing in 1994 (NYSE: O). The company is a member of the S&P 500 Dividend Aristocrats index. Additional information about the company can be obtained from the corporate website at www.realtyincome.com.

EPR Properties Company Profile (Get Rating)

EPR Properties is a leading experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues which create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have nearly $6.7 billion in total investments across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.

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