Compare First Industrial Realty Trust, Inc. (FR) vs Realty Income Corporation (O) Stock

First Industrial Realty Trust, Inc. (FR) offers the better valuation at 29.1x trailing P/E (36.5x forward), making it the more compelling value choice. Analysts rate First Industrial Realty Trust, Inc. (FR) a "Buy" — based on 29 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, First Industrial Realty Trust, Inc. (FR) is the cheapest at 29.1x versus Realty Income Corporation at 57.3x. On forward P/E, First Industrial Realty Trust, Inc. is actually cheaper at 36.5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: First Industrial Realty Trust, Inc. wins at 12.55x versus Realty Income Corporation's 80.25x.

Over the past 5 years, First Industrial Realty Trust, Inc. (FR) delivered a total return of +62.7%, compared to +40.3% for Realty Income Corporation (O). A $10,000 investment in FR five years ago would be worth approximately $16K today (assuming dividends reinvested). Over 10 years, the gap is even starker: FR returned +245.4% versus O's +67.6%. 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 0.19β versus First Industrial Realty Trust, Inc.'s 0.78β — meaning FR is approximately 313% more volatile than O relative to the S&P 500.

First Industrial Realty Trust, Inc. (FR) is the more profitable company, earning 42.7% net margin versus 18.4% for Realty Income Corporation — meaning it keeps 42.7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FR leads at 44.3% 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, First Industrial Realty Trust, Inc. (FR) is the more undervalued stock at a PEG of 12.55x 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, First Industrial Realty Trust, Inc. (FR) trades at 36.5x forward P/E versus 41.8x for Realty Income Corporation — 5.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FR: 1.2% to $63.89.

In this comparison, FR (2.3% yield) pays a dividend. O does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, First Industrial Realty Trust, Inc. (FR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.78), 2.3% yield, +245.4% 10Y return). Both have compounded well over 10 years (FR: +245.4%, O: +67.6%), 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. FR 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.