Comprehensive Stock Comparison
Compare Federal Realty Investment Trust (FRT) vs Realty Income Corporation (O) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | O | 9.1% revenue growth vs FRT's 6.4% |
| Value | FRT | Lower P/E (38.0x vs 41.8x), PEG 1.57 vs 80.25 |
| Quality / Margins | FRT | 27.6% net margin vs O's 18.4% |
| Stability / Safety | O | Beta 0.19 vs FRT's 0.72 |
| Dividends | FRT | 4.2% yield; 3-year raise streak; O pays no meaningful dividend |
| Momentum (1Y) | O | +23.6% vs FRT's +7.4% |
| Efficiency (ROA) | FRT | 3.9% ROA vs O's 1.5%, ROIC 7.3% vs 2.3% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Federal Realty Investment Trust is a retail-focused real estate investment trust that owns, operates, and redevelops high-quality shopping centers and mixed-use properties in affluent coastal markets. It generates revenue primarily through rental income from retail tenants—with additional income from residential units and parking—while its development expertise creates value through property repositioning. The company's competitive advantage lies in its prime, supply-constrained locations in high-barrier-to-entry markets and its multi-decade track record of creating successful mixed-use destinations.
Realty Income is a real estate investment trust that owns and leases single-tenant commercial properties to retail and service-oriented businesses. It generates revenue primarily through long-term triple-net leases—where tenants pay rent plus property expenses—with retail clients like convenience stores and drugstores accounting for roughly 80% of its portfolio. The company's moat lies in its massive scale, diversified tenant base, and long-term lease structure that provides predictable monthly cash flow supporting its famous monthly dividend payments.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
O leads in 3 of 6 categories (Financial Metrics, Total Returns). FRT leads in 2 (Valuation Metrics, Profitability & Efficiency). 1 tied.
Financial Metrics (TTM)
O is the larger business by revenue, generating $5.7B annually — 4.6x FRT's $1.3B. FRT is the more profitable business, keeping 27.6% of every revenue dollar as net income compared to O's 18.4%. On growth, O holds the edge at +11.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | FRTFederal Realty In… | ORealty Income Cor… |
|---|---|---|
| RevenueTrailing 12 months | $1.3B | $5.7B |
| EBITDAEarnings before interest/tax | $888M | $4.1B |
| Net IncomeAfter-tax profit | $347M | $1.1B |
| Free Cash FlowCash after capex | $533M | $2.8B |
| Gross MarginGross profit ÷ Revenue | +67.3% | +89.8% |
| Operating MarginEBIT ÷ Revenue | +42.3% | +28.3% |
| Net MarginNet income ÷ Revenue | +27.6% | +18.4% |
| FCF MarginFCF ÷ Revenue | +42.5% | +48.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +6.3% | +11.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -1.4% | +39.1% |
Valuation Metrics
At 22.7x trailing earnings, FRT trades at a 60% valuation discount to O's 57.3x P/E. Adjusting for growth (PEG ratio), FRT offers better value at 0.94x vs O's 80.25x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | FRTFederal Realty In… | ORealty Income Cor… |
|---|---|---|
| Market CapShares × price | $9.4B | $62.6B |
| Enterprise ValueMkt cap + debt − cash | $10.4B | $62.1B |
| Trailing P/EPrice ÷ TTM EPS | 22.71x | 57.27x |
| Forward P/EPrice ÷ next-FY EPS est. | 38.00x | 41.80x |
| PEG RatioP/E ÷ EPS growth rate | 0.94x | 80.25x |
| EV / EBITDAEnterprise value multiple | 10.74x | 15.16x |
| Price / SalesMarket cap ÷ Revenue | 7.34x | 10.88x |
| Price / BookPrice ÷ Book value/share | 2.72x | 1.51x |
| Price / FCFMarket cap ÷ FCF | 15.08x | 15.66x |
Profitability & Efficiency
FRT delivers a 10.0% return on equity — every $100 of shareholder capital generates $10 in annual profit, vs $3 for O.
| Metric | FRTFederal Realty In… | ORealty Income Cor… |
|---|---|---|
| ROE (TTM)Return on equity | +10.0% | +2.6% |
| ROA (TTM)Return on assets | +3.9% | +1.5% |
| ROICReturn on invested capital | +7.3% | +2.3% |
| ROCEReturn on capital employed | +7.4% | +2.3% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 5 |
| Debt / EquityFinancial leverage | 0.33x | — |
| Net DebtTotal debt minus cash | $1.0B | -$435M |
| Cash & Equiv.Liquid assets | $107M | $435M |
| Total DebtShort + long-term debt | $1.1B | $0 |
| Interest CoverageEBIT ÷ Interest expense | — | — |
Total Returns (with DRIP)
A $10,000 investment in O five years ago would be worth $14,035 today (with dividends reinvested), compared to $12,549 for FRT. Over the past 12 months, O leads with a +23.6% total return vs FRT's +7.4%. The 3-year compound annual growth rate (CAGR) favors O at 6.3% vs FRT's 4.5% — a key indicator of consistent wealth creation.
| Metric | FRTFederal Realty In… | ORealty Income Cor… |
|---|---|---|
| YTD ReturnYear-to-date | +11.0% | +17.9% |
| 1-Year ReturnPast 12 months | +7.4% | +23.6% |
| 3-Year ReturnCumulative with dividends | +14.2% | +19.9% |
| 5-Year ReturnCumulative with dividends | +25.5% | +40.3% |
| 10-Year ReturnCumulative with dividends | +1.8% | +67.6% |
| CAGR (3Y)Annualised 3-year return | +4.5% | +6.3% |
Risk & Volatility
O is the less volatile stock with a 0.19 beta — it tends to amplify market swings less than FRT's 0.72 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | FRTFederal Realty In… | ORealty Income Cor… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.72x | 0.19x |
| 52-Week HighHighest price in past year | $109.90 | $67.94 |
| 52-Week LowLowest price in past year | $80.65 | $50.71 |
| % of 52W HighCurrent price vs 52-week peak | +99.0% | +98.6% |
| RSI (14)Momentum oscillator 0–100 | 65.5 | 70.7 |
| Avg Volume (50D)Average daily shares traded | 629K | 5.4M |
Analyst Outlook
Wall Street rates FRT as "Buy" and O as "Hold". Consensus price targets imply 2.3% upside for FRT (target: $111) vs -5.4% for O (target: $63). FRT is the only dividend payer here at 4.16% yield — a key consideration for income-focused portfolios.
| Metric | FRTFederal Realty In… | ORealty Income Cor… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $111.30 | $63.38 |
| # AnalystsCovering analysts | 33 | 33 |
| Dividend YieldAnnual dividend ÷ price | +4.2% | — |
| Dividend StreakConsecutive years of raises | 3 | 27 |
| Dividend / ShareAnnual DPS | $4.52 | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Federal Realty Inve… (FRT) | 100 | 83.66 | -16.3% |
| Realty Income Corpo… (O) | 100 | 83.35 | -16.6% |
Realty Income Corpo… (O) returned +40% over 5 years vs Federal Realty Inve… (FRT)'s +25%. A $10,000 investment in O 5 years ago would be worth $14,035 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Federal Realty Inve… (FRT) | $802M | $1.3B | +59.6% |
| Realty Income Corpo… (O) | $1.1B | $5.7B | +421.2% |
Federal Realty Investment Trust's revenue grew from $802M (2016) to $1.3B (2025) — a 5.3% CAGR. Realty Income Corporation's revenue grew from $1.1B (2016) to $5.7B (2025) — a 20.1% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Federal Realty Inve… (FRT) | 31.2% | 32.1% | +3.1% |
| Realty Income Corpo… (O) | 28.6% | 18.4% | -35.6% |
Federal Realty Investment Trust's net margin went from 31% (2016) to 32% (2025). Realty Income Corporation's net margin went from 29% (2016) to 18% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Federal Realty Inve… (FRT) | 33.5 | 21 | -37.3% |
| Realty Income Corpo… (O) | 50.2 | 48.2 | -4.0% |
Federal Realty Investment Trust has traded in a 21x–53x P/E range over 9 years; current trailing P/E is ~23x. Realty Income Corporation has traded in a 45x–82x P/E range over 9 years; current trailing P/E is ~57x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Federal Realty Inve… (FRT) | 3.5 | 4.79 | +36.9% |
| Realty Income Corpo… (O) | 1.13 | 1.17 | +3.5% |
Federal Realty Investment Trust's EPS grew from $3.50 (2016) to $4.79 (2025) — a 4% CAGR. Realty Income Corporation's EPS grew from $1.13 (2016) to $1.17 (2025) — a 0% CAGR.
Chart 6Free Cash Flow — 5 Years
Federal Realty Investment Trust generated $622M FCF in 2025 (+1918% vs 2021). Realty Income Corporation generated $4B FCF in 2025 (+207% vs 2021).
FRT vs O: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is FRT or O a better buy right now?
Federal Realty Investment Trust (FRT) offers the better valuation at 22.7x trailing P/E (38.0x forward), making it the more compelling value choice. Analysts rate Federal Realty Investment Trust (FRT) a "Buy" — based on 33 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — FRT or O?
On trailing P/E, Federal Realty Investment Trust (FRT) is the cheapest at 22.7x versus Realty Income Corporation at 57.3x. On forward P/E, Federal Realty Investment Trust is actually cheaper at 38.0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Federal Realty Investment Trust wins at 1.57x versus Realty Income Corporation's 80.25x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — FRT or O?
Over the past 5 years, Realty Income Corporation (O) delivered a total return of +40.3%, compared to +25.5% for Federal Realty Investment Trust (FRT). A $10,000 investment in O five years ago would be worth approximately $14K today (assuming dividends reinvested). Over 10 years, the gap is even starker: O returned +67.6% versus FRT's +1.8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — FRT or O?
By beta (market sensitivity over 5 years), Realty Income Corporation (O) is the lower-risk stock at 0.19β versus Federal Realty Investment Trust's 0.72β — meaning FRT is approximately 278% more volatile than O relative to the S&P 500.
05Which has better profit margins — FRT or O?
Federal Realty Investment Trust (FRT) is the more profitable company, earning 32.1% net margin versus 18.4% for Realty Income Corporation — meaning it keeps 32.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FRT leads at 47.1% versus 28.3% for O. At the gross margin level — before operating expenses — O leads at 89.8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is FRT or O more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Federal Realty Investment Trust (FRT) is the more undervalued stock at a PEG of 1.57x versus Realty Income Corporation's 80.25x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Federal Realty Investment Trust (FRT) trades at 38.0x forward P/E versus 41.8x for Realty Income Corporation — 3.8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FRT: 2.3% to $111.30.
07Which pays a better dividend — FRT or O?
In this comparison, FRT (4.2% yield) pays a dividend. O does not pay a meaningful dividend and should not be held primarily for income.
08Is FRT or O better for a retirement portfolio?
For long-horizon retirement investors, Realty Income Corporation (O) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.19)). Both have compounded well over 10 years (O: +67.6%, FRT: +1.8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between FRT and O?
Both stocks operate in the Real Estate sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: FRT is a small-cap income-oriented stock; O is a mid-cap quality compounder stock. FRT pays a dividend while O does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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