Realty Income vs W. P. Carey Which Is Superior?

Realty Income and W. P. Carey are two highly regarded real estate investment trusts (REITs) in the market today, offering investors exposure to different aspects of the commercial real estate sector. Realty Income is known for its focus on net lease retail properties, while W. P. Carey has a more diversified portfolio that includes industrial, office, and retail properties. Both companies are well-established in the industry and known for their reliable dividend payments, making them attractive options for income-seeking investors. In this comparison, we will explore the key differences and similarities between Realty Income and W. P. Carey stocks, helping you make an informed investment decision.

Realty Income or W. P. Carey?

When comparing Realty Income and W. P. Carey, 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 W. P. Carey.

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 5.41%, while W. P. Carey has a dividend yield of 6.23%. 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 291.48%. On the other hand, W. P. Carey reports a 5-year dividend growth of -0.11% year and a payout ratio of 143.85%.

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 57.07 and W. P. Carey's P/E ratio at 21.99. 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 1.31 while W. P. Carey's P/B ratio is 1.43.

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 W. P. Carey's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Realty Income's ROE at 2.36% and W. P. Carey's ROE at 6.45%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $57.49 for Realty Income and $55.63 for W. P. Carey. Over the past year, Realty Income's prices ranged from $49.52 to $64.88, with a yearly change of 31.02%. W. P. Carey's prices fluctuated between $53.01 and $67.40, with a yearly change of 27.15%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.