FrontView REIT (NYSE:FVR – Get Free Report) and Realty Income (NYSE:O – Get Free Report) are both real estate companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.
Volatility and Risk
FrontView REIT has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Realty Income has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.
Institutional and Insider Ownership
70.8% of Realty Income shares are owned by institutional investors. 9.6% of FrontView REIT shares are owned by insiders. Comparatively, 0.1% of Realty Income shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for FrontView REIT and Realty Income, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FrontView REIT | 0 | 4 | 6 | 3 | 2.92 |
| Realty Income | 1 | 9 | 5 | 3 | 2.56 |
FrontView REIT currently has a consensus target price of $21.61, indicating a potential upside of 12.65%. Realty Income has a consensus target price of $71.51, indicating a potential upside of 21.14%. Given Realty Income’s higher possible upside, analysts clearly believe Realty Income is more favorable than FrontView REIT.
Profitability
This table compares FrontView REIT and Realty Income’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FrontView REIT | -0.04% | -0.01% | N/A |
| Realty Income | 21.85% | 3.27% | 1.80% |
Dividends
FrontView REIT pays an annual dividend of $0.86 per share and has a dividend yield of 4.5%. Realty Income pays an annual dividend of $3.26 per share and has a dividend yield of 5.5%. FrontView REIT pays out -1,075.0% of its earnings in the form of a dividend. Realty Income pays out 224.8% 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 raised its dividend for 31 consecutive years. Realty Income is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares FrontView REIT and Realty Income”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FrontView REIT | $71.32 million | 6.58 | -$3.83 million | ($0.08) | -239.81 |
| Realty Income | $5.75 billion | 9.77 | $1.06 billion | $1.45 | 40.71 |
Realty Income has higher revenue and earnings than FrontView REIT. FrontView REIT is trading at a lower price-to-earnings ratio than Realty Income, indicating that it is currently the more affordable of the two stocks.
Summary
Realty Income beats FrontView REIT on 12 of the 17 factors compared between the two stocks.
About FrontView REIT
FrontView REIT specializes in real estate investing.
About Realty Income
Realty Income, The Monthly Dividend Company, is an S&P 500 company and member of the S&P 500 Dividend Aristocrats index. We invest in people and places to deliver dependable monthly dividends that increase over time. The company is structured as a real estate investment trust (“REIT”), and its monthly dividends are supported by the cash flow from over 15,450 real estate properties (including properties acquired in the Spirit merger in January 2024) primarily owned under long-term net lease agreements with commercial clients. To date, the company has declared 644 consecutive monthly dividends on its shares of common stock throughout its 55-year operating history and increased the dividend 123 times since Realty Income’s public listing in 1994 (NYSE: O).
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