Compare NNN REIT, Inc. (NNN) vs Realty Income Corporation (O) Stock

NNN REIT, Inc. (NNN) offers the better valuation at 21.9x trailing P/E (22.2x forward), making it the more compelling value choice. Analysts rate NNN REIT, Inc. (NNN) a "Hold" — 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, NNN REIT, Inc. (NNN) is the cheapest at 21.9x versus Realty Income Corporation at 57.3x. On forward P/E, NNN REIT, Inc. is actually cheaper at 22.2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: NNN REIT, Inc. wins at 1.99x versus Realty Income Corporation's 80.25x — a reasonable growth-adjusted valuation.

Over the past 5 years, Realty Income Corporation (O) delivered a total return of +40.3%, compared to +29.8% for NNN REIT, Inc. (NNN). 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 NNN's +50.8%. 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 NNN REIT, Inc.'s 0.25β — meaning NNN is approximately 32% more volatile than O relative to the S&P 500.

NNN REIT, Inc. (NNN) is the more profitable company, earning 42.1% net margin versus 18.4% for Realty Income Corporation — meaning it keeps 42.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NNN leads at 63.6% versus 28.3% for O. At the gross margin level — before operating expenses — NNN leads at 96.0%, 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, NNN REIT, Inc. (NNN) is the more undervalued stock at a PEG of 1.99x 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, NNN REIT, Inc. (NNN) trades at 22.2x forward P/E versus 41.8x for Realty Income Corporation — 19.6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NNN: -0.9% to $44.93.

None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than 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 0.19)). Both have compounded well over 10 years (O: +67.6%, NNN: +50.8%), 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.

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. 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.