Realty Income (O) and Regency Centers (REG) Head-To-Head Analysis

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Realty Income (NYSE:O) and Regency Centers (NYSE:REG) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.

Volatility and Risk

Realty Income has a beta of 0.09, suggesting that its share price is 91% less volatile than the S&P 500. Comparatively, Regency Centers has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Realty Income $1.22 billion 15.54 $318.79 million $3.06 20.92
Regency Centers $984.33 million 10.55 $176.07 million $3.69 16.61

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Realty Income and Regency Centers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Realty Income 0 6 5 0 2.45
Regency Centers 0 5 8 0 2.62

Realty Income currently has a consensus price target of $58.17, suggesting a potential downside of 9.11%. Regency Centers has a consensus price target of $68.57, suggesting a potential upside of 12.02%. Given Regency Centers’ stronger consensus rating and higher probable upside, analysts clearly believe Regency Centers is more favorable than Realty Income.

Profitability

This table compares Realty Income and Regency Centers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Realty Income 26.19% 5.17% 2.65%
Regency Centers 23.19% 3.86% 2.29%

Dividends

Realty Income pays an annual dividend of $2.65 per share and has a dividend yield of 4.1%. Regency Centers pays an annual dividend of $2.22 per share and has a dividend yield of 3.6%. Realty Income pays out 86.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Regency Centers pays out 60.2% of its earnings in the form of a dividend. Realty Income has raised its dividend for 23 consecutive years and Regency Centers has raised its dividend for 5 consecutive years. Realty Income is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

69.9% of Realty Income shares are held by institutional investors. Comparatively, 93.9% of Regency Centers shares are held by institutional investors. 0.2% of Realty Income shares are held by company insiders. Comparatively, 1.1% of Regency Centers shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Realty Income beats Regency Centers on 9 of the 17 factors compared between the two stocks.

Realty Income Company Profile

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 5,600 real estate properties owned under long-term lease agreements with regional and national commercial tenants. To date, the company has declared 580 consecutive common stock monthly dividends throughout its 49-year operating history and increased the dividend 98 times since Realty Income's public listing in 1994 (NYSE: O).

Regency Centers Company Profile

Regency Centers is the preeminent national owner, operator, and developer of shopping centers located in affluent and densely populated trade areas. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered, self-managed, and an S&P 500 Index member.

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