AAT vs O

For growth investors, Realty Income Corporation (O) is the stronger pick with 9.

1% revenue growth year-over-year, versus -4. 7% for American Assets Trust, Inc. (AAT). American Assets Trust, Inc. (AAT) offers the better valuation at 22. 7x trailing P/E (45. 3x forward), making it the more compelling value choice. Analysts rate American Assets Trust, Inc. (AAT) a "Buy" — based on 11 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.

On trailing P/E, American Assets Trust, Inc.

(AAT) is the cheapest at 22. 7x versus Realty Income Corporation at 54. 3x. On forward P/E, Realty Income Corporation is actually cheaper at 38. 2x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: American Assets Trust, Inc. wins at 3. 05x versus Realty Income Corporation's 73. 34x.

Over the past 5 years, Realty Income Corporation (O) delivered a total return of +21.

3%, compared to -18. 9% for American Assets Trust, Inc. (AAT). Over 10 years, the gap is even starker: O returned +51. 8% versus AAT's -21. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Realty Income Corporation (O) is the lower-risk stock at 0.

09β versus American Assets Trust, Inc. 's 0. 64β — meaning AAT is approximately 612% more volatile than O relative to the S&P 500.

By revenue growth (latest reported year), Realty Income Corporation (O) is pulling ahead at 9.

1% versus -4. 7% for American Assets Trust, Inc. (AAT). On earnings-per-share growth, the picture is similar: Realty Income Corporation grew EPS 19. 4% year-over-year, compared to -2. 1% for American Assets Trust, Inc.. Over a 3-year CAGR, O leads at 19. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Realty Income Corporation (O) is the more profitable company, earning 18.

4% net margin versus 16. 4% for American Assets Trust, Inc. — meaning it keeps 18. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AAT leads at 33. 5% 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.

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, American Assets Trust, Inc. (AAT) is the more undervalued stock at a PEG of 3. 05x versus Realty Income Corporation's 73. 34x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Realty Income Corporation (O) trades at 38. 2x forward P/E versus 45. 3x for American Assets Trust, Inc. — 7. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for O: 2. 6% to $65. 25.

In this comparison, AAT (6.

6% yield) pays a dividend. O does not pay a meaningful dividend and should not be held primarily for income.

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.

09)). Both have compounded well over 10 years (O: +51. 8%, AAT: -21. 4%), 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.

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: AAT is a small-cap income-oriented stock; O is a mid-cap quality compounder stock. AAT 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.