Realty Income (NYSE:O – Get Free Report) and Equity Commonwealth (NYSE:EQC – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.
Earnings and Valuation
This table compares Realty Income and Equity Commonwealth”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Realty Income | $5.01 billion | 10.05 | $872.31 million | $1.05 | 54.77 |
Equity Commonwealth | $60.52 million | 35.68 | $91.16 million | $0.39 | 51.59 |
Realty Income has higher revenue and earnings than Equity Commonwealth. Equity Commonwealth 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
Insider & Institutional Ownership
70.8% of Realty Income shares are owned by institutional investors. Comparatively, 96.0% of Equity Commonwealth shares are owned by institutional investors. 0.1% of Realty Income shares are owned by insiders. Comparatively, 2.1% of Equity Commonwealth shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Realty Income and Equity Commonwealth, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Realty Income | 0 | 8 | 6 | 0 | 2.43 |
Equity Commonwealth | 0 | 0 | 0 | 0 | 0.00 |
Realty Income presently has a consensus target price of $63.85, suggesting a potential upside of 11.02%. Given Realty Income’s stronger consensus rating and higher probable upside, equities analysts clearly believe Realty Income is more favorable than Equity Commonwealth.
Profitability
This table compares Realty Income and Equity Commonwealth’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Realty Income | 17.57% | 2.35% | 1.34% |
Equity Commonwealth | 82.00% | 2.09% | 1.96% |
Summary
Realty Income beats Equity Commonwealth on 9 of the 14 factors compared between the two stocks.
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).
About Equity Commonwealth
Equity Commonwealth (NYSE: EQC) is a Chicago based, internally managed and self-advised real estate investment trust (REIT) with commercial office properties in the United States. EQC's portfolio is comprised of four properties totaling 1.5 million square feet.
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