Compare Realty Income Corporation (O) vs NETSTREIT Corp. (NTST) Stock

Realty Income Corporation (O) offers the better valuation at 57.3x trailing P/E (41.8x forward), making it the more compelling value choice. Analysts rate NETSTREIT Corp. (NTST) a "Buy" — based on 18 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, Realty Income Corporation (O) is the cheapest at 57.3x versus NETSTREIT Corp. at 259.6x. On forward P/E, Realty Income Corporation is actually cheaper at 41.8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: NETSTREIT Corp. wins at 1.09x 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 +38.3% for NETSTREIT Corp. (NTST). 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 NTST's +41.7%. 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), NETSTREIT Corp. (NTST) is the lower-risk stock at 0.16β versus Realty Income Corporation's 0.19β — meaning O is approximately 16% more volatile than NTST relative to the S&P 500.

Realty Income Corporation (O) is the more profitable company, earning 18.4% net margin versus 3.5% for NETSTREIT Corp. — meaning it keeps 18.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: O leads at 28.3% versus 25.7% for NTST. At the gross margin level — before operating expenses — NTST leads at 99.9%, 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, NETSTREIT Corp. (NTST) is the more undervalued stock at a PEG of 1.09x versus Realty Income Corporation's 80.25x. A PEG below 1.5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Realty Income Corporation (O) trades at 41.8x forward P/E versus 63.6x for NETSTREIT Corp. — 21.8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NTST: 1.1% to $21.00.

In this comparison, NTST (4.0% yield) pays a dividend. O does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, NETSTREIT Corp. (NTST) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.16), 4.0% yield). Both have compounded well over 10 years (NTST: +41.7%, 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. In terms of investment character: O is a mid-cap quality compounder stock; NTST is a small-cap income-oriented stock. NTST 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.