Head to Head Review: FrontView REIT (NYSE:FVR) & Realty Income (NYSE:O)

Realty Income (NYSE:O) and FrontView REIT (NYSE:FVR) are both real estate companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Dividends

Realty Income pays an annual dividend of $3.26 per share and has a dividend yield of 5.7%. FrontView REIT pays an annual dividend of $0.86 per share and has a dividend yield of 4.6%. Realty Income pays out 238.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. FrontView REIT pays out 2,866.7% 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 31 consecutive years. Realty Income is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Realty Income and FrontView REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Realty Income	20.93%	3.12%	1.72%
FrontView REIT	2.10%	0.29%	0.17%

Earnings and Valuation

This table compares Realty Income and FrontView REIT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Realty Income	$5.75 billion	9.48	$1.06 billion	$1.37	42.05
FrontView REIT	$69.27 million	6.64	-$3.83 million	$0.03	627.10

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

Insider and Institutional Ownership

70.8% of Realty Income shares are owned by institutional investors. 0.1% of Realty Income shares are owned by insiders. Comparatively, 9.6% of FrontView REIT shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Realty Income has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, FrontView REIT has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Realty Income and FrontView REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Realty Income	1	9	6	2	2.50
FrontView REIT	0	4	7	2	2.85

Realty Income currently has a consensus target price of $72.34, indicating a potential upside of 25.56%. FrontView REIT has a consensus target price of $21.72, indicating a potential upside of 15.46%. Given Realty Income’s higher possible upside, analysts plainly believe Realty Income is more favorable than FrontView REIT.

Summary

Realty Income beats FrontView REIT on 12 of the 17 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 FrontView REIT

FrontView REIT specializes in real estate investing.