Realty Income vs STAG Industrial

Realty Income and STAG Industrial are both Real Estate Investment Trusts (REITs) that specialize in commercial properties. Realty Income is known for its diversified portfolio of retail properties, while STAG Industrial focuses on industrial properties. Investors view Realty Income as a stable, income-producing stock with a long history of consistent dividends, while STAG Industrial is seen as a growth stock with potential for capital appreciation. Both companies offer investors the opportunity to invest in real estate assets while receiving regular dividend payments.

Realty Income or STAG Industrial?

When comparing Realty Income and STAG Industrial, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Realty Income and STAG Industrial.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Realty Income has a dividend yield of 4.91%, while STAG Industrial has a dividend yield of 3.91%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Realty Income reports a 5-year dividend growth of 3.00% year and a payout ratio of 286.57%. On the other hand, STAG Industrial reports a 5-year dividend growth of 0.71% year and a payout ratio of 145.45%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Realty Income P/E ratio at 65.37 and STAG Industrial's P/E ratio at 36.58. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Realty Income P/B ratio is 1.42 while STAG Industrial's P/B ratio is 2.06.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Realty Income has seen a 5-year revenue growth of 0.28%, while STAG Industrial's is 0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Realty Income's ROE at 2.37% and STAG Industrial's ROE at 5.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $62.37 for Realty Income and $37.39 for STAG Industrial. Over the past year, Realty Income's prices ranged from $45.04 to $63.74, with a yearly change of 41.52%. STAG Industrial's prices fluctuated between $31.69 and $41.63, with a yearly change of 31.37%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.