Comprehensive Stock Comparison
Compare PennyMac Mortgage Investment Trust (PMTU) 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 PMTU's -30.5% |
| Value | PMTU | Lower P/E (16.5x vs 41.8x) |
| Quality / Margins | O | 18.4% net margin vs PMTU's 14.6% |
| Stability / Safety | PMTU | Beta 0.03 vs O's 0.19 |
| Dividends | PMTU | 6.3% yield; 1-year raise streak; O pays no meaningful dividend |
| Momentum (1Y) | O | +23.6% vs PMTU's +8.0% |
| Efficiency (ROA) | O | 1.5% ROA vs PMTU's 0.7%, ROIC 2.3% vs 1.9% |
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
PennyMac Mortgage Investment Trust is a mortgage real estate investment trust that invests in residential mortgage loans and mortgage-related assets. It generates income primarily through correspondent lending—purchasing and reselling newly originated loans—and through credit-sensitive strategies like distressed loan investments and real estate holdings, with interest rate hedging activities providing additional revenue. The company's competitive advantage lies in its specialized mortgage expertise and vertically integrated platform that spans loan origination, servicing, and investment management.
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 (Profitability & Efficiency, Total Returns). PMTU leads in 1 (Valuation Metrics). 2 tied.
Financial Metrics (TTM)
O is the larger business by revenue, generating $5.7B annually — 6.9x PMTU's $839M. Profitability is closely matched — net margins range from 18.4% (O) to 14.6% (PMTU). On growth, PMTU holds the edge at +84.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | PMTUPennyMac Mortgage… | ORealty Income Cor… |
|---|---|---|
| RevenueTrailing 12 months | $839M | $5.7B |
| EBITDAEarnings before interest/tax | $1.2B | $4.1B |
| Net IncomeAfter-tax profit | $122M | $1.1B |
| Free Cash FlowCash after capex | -$5.5B | $2.8B |
| Gross MarginGross profit ÷ Revenue | +84.4% | +89.8% |
| Operating MarginEBIT ÷ Revenue | +70.9% | +28.3% |
| Net MarginNet income ÷ Revenue | +14.6% | +18.4% |
| FCF MarginFCF ÷ Revenue | -6.6% | +48.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +84.2% | +11.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +52.8% | +39.1% |
Valuation Metrics
At 18.7x trailing earnings, PMTU trades at a 67% valuation discount to O's 57.3x P/E. On an enterprise value basis, PMTU's 13.6x EV/EBITDA is more attractive than O's 15.2x.
| Metric | PMTUPennyMac Mortgage… | ORealty Income Cor… |
|---|---|---|
| Market CapShares × price | $2.2B | $62.6B |
| Enterprise ValueMkt cap + debt − cash | $14.0B | $62.1B |
| Trailing P/EPrice ÷ TTM EPS | 18.72x | 57.27x |
| Forward P/EPrice ÷ next-FY EPS est. | 16.52x | 41.80x |
| PEG RatioP/E ÷ EPS growth rate | — | 80.25x |
| EV / EBITDAEnterprise value multiple | 13.64x | 15.16x |
| Price / SalesMarket cap ÷ Revenue | 4.41x | 10.88x |
| Price / BookPrice ÷ Book value/share | 1.15x | 1.51x |
| Price / FCFMarket cap ÷ FCF | — | 15.66x |
Profitability & Efficiency
PMTU delivers a 6.5% return on equity — every $100 of shareholder capital generates $6 in annual profit, vs $3 for O. On the Piotroski fundamental quality scale (0–9), O scores 5/9 vs PMTU's 2/9, reflecting solid financial health.
| Metric | PMTUPennyMac Mortgage… | ORealty Income Cor… |
|---|---|---|
| ROE (TTM)Return on equity | +6.5% | +2.6% |
| ROA (TTM)Return on assets | +0.7% | +1.5% |
| ROICReturn on invested capital | +1.9% | +2.3% |
| ROCEReturn on capital employed | +4.6% | +2.3% |
| Piotroski ScoreFundamental quality 0–9 | 2 | 5 |
| Debt / EquityFinancial leverage | 6.26x | — |
| Net DebtTotal debt minus cash | $11.8B | -$435M |
| Cash & Equiv.Liquid assets | $338M | $435M |
| Total DebtShort + long-term debt | $12.1B | $0 |
| Interest CoverageEBIT ÷ Interest expense | 0.46x | — |
Total Returns (with DRIP)
A $10,000 investment in O five years ago would be worth $14,035 today (with dividends reinvested), compared to $12,464 for PMTU. Over the past 12 months, O leads with a +23.6% total return vs PMTU's +8.0%. The 3-year compound annual growth rate (CAGR) favors PMTU at 7.6% vs O's 6.3% — a key indicator of consistent wealth creation.
| Metric | PMTUPennyMac Mortgage… | ORealty Income Cor… |
|---|---|---|
| YTD ReturnYear-to-date | +0.8% | +17.9% |
| 1-Year ReturnPast 12 months | +8.0% | +23.6% |
| 3-Year ReturnCumulative with dividends | +24.6% | +19.9% |
| 5-Year ReturnCumulative with dividends | +24.6% | +40.3% |
| 10-Year ReturnCumulative with dividends | +24.6% | +67.6% |
| CAGR (3Y)Annualised 3-year return | +7.6% | +6.3% |
Risk & Volatility
PMTU is the less volatile stock with a 0.03 beta — it tends to amplify market swings less than O's 0.19 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | PMTUPennyMac Mortgage… | ORealty Income Cor… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.03x | 0.19x |
| 52-Week HighHighest price in past year | $26.26 | $67.94 |
| 52-Week LowLowest price in past year | $24.46 | $50.71 |
| % of 52W HighCurrent price vs 52-week peak | +97.6% | +98.6% |
| RSI (14)Momentum oscillator 0–100 | 50.1 | 70.7 |
| Avg Volume (50D)Average daily shares traded | 2K | 5.4M |
Analyst Outlook
PMTU is the only dividend payer here at 6.26% yield — a key consideration for income-focused portfolios.
| Metric | PMTUPennyMac Mortgage… | ORealty Income Cor… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | — | Hold |
| Price TargetConsensus 12-month target | — | $63.38 |
| # AnalystsCovering analysts | — | 33 |
| Dividend YieldAnnual dividend ÷ price | +6.3% | — |
| Dividend StreakConsecutive years of raises | 1 | 27 |
| Dividend / ShareAnnual DPS | $1.60 | — |
| 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 | Sep 23 | Feb 26 | Change |
|---|---|---|---|
| PennyMac Mortgage I… (PMTU) | 100 | 104.5 | +4.5% |
| Realty Income Corpo… (O) | 100 | 123.56 | +23.6% |
Realty Income Corpo… (O) returned +40% over 5 years vs PennyMac Mortgage I… (PMTU)'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 |
|---|---|---|---|
| PennyMac Mortgage I… (PMTU) | $311M | $505M | +62.2% |
| Realty Income Corpo… (O) | $1.1B | $5.7B | +421.2% |
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 |
|---|---|---|---|
| PennyMac Mortgage I… (PMTU) | 24.4% | 31.9% | +30.9% |
| Realty Income Corpo… (O) | 28.6% | 18.4% | -35.6% |
Realty Income Corporation's net margin went from 29% (2016) to 18% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Realty Income Corpo… (O) | 50.2 | 48.2 | -4.0% |
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 |
|---|---|---|---|
| PennyMac Mortgage I… (PMTU) | 1.08 | 1.37 | +26.9% |
| Realty Income Corpo… (O) | 1.13 | 1.17 | +3.5% |
Realty Income Corporation's EPS grew from $1.13 (2016) to $1.17 (2025) — a 0% CAGR.
Chart 6Free Cash Flow — 5 Years
PennyMac Mortgage Investment Trust generated $-3B FCF in 2024 (+2% vs 2021). Realty Income Corporation generated $4B FCF in 2025 (+207% vs 2021).
PMTU vs O: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is PMTU or O a better buy right now?
PennyMac Mortgage Investment Trust (PMTU) offers the better valuation at 18.7x trailing P/E (16.5x forward), making it the more compelling value choice. Analysts rate Realty Income Corporation (O) a "Hold" — 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 — PMTU or O?
On trailing P/E, PennyMac Mortgage Investment Trust (PMTU) is the cheapest at 18.7x versus Realty Income Corporation at 57.3x. On forward P/E, PennyMac Mortgage Investment Trust is actually cheaper at 16.5x.
03Which is the better long-term investment — PMTU or O?
Over the past 5 years, Realty Income Corporation (O) delivered a total return of +40.3%, compared to +24.6% for PennyMac Mortgage Investment Trust (PMTU). 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 PMTU's +24.6%. 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 — PMTU or O?
By beta (market sensitivity over 5 years), PennyMac Mortgage Investment Trust (PMTU) is the lower-risk stock at 0.03β versus Realty Income Corporation's 0.19β — meaning O is approximately 602% more volatile than PMTU relative to the S&P 500.
05Which has better profit margins — PMTU or O?
PennyMac Mortgage Investment Trust (PMTU) is the more profitable company, earning 31.9% net margin versus 18.4% for Realty Income Corporation — meaning it keeps 31.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PMTU leads at 65.7% 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 PMTU or O more undervalued right now?
On forward earnings alone, PennyMac Mortgage Investment Trust (PMTU) trades at 16.5x forward P/E versus 41.8x for Realty Income Corporation — 25.3x cheaper on a one-year earnings basis.
07Which pays a better dividend — PMTU or O?
In this comparison, PMTU (6.3% yield) pays a dividend. O does not pay a meaningful dividend and should not be held primarily for income.
08Is PMTU or O better for a retirement portfolio?
For long-horizon retirement investors, PennyMac Mortgage Investment Trust (PMTU) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.03), 6.3% yield). Both have compounded well over 10 years (PMTU: +24.6%, 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.
09What are the main differences between PMTU 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: PMTU is a small-cap income-oriented stock; O is a mid-cap quality compounder stock. PMTU 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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