STAG Industrial vs Realty Income Which Is More Profitable?

When it comes to investing in real estate stocks, two popular options are STAG Industrial and Realty Income. STAG Industrial focuses on acquiring and managing single-tenant industrial properties, offering investors the opportunity to benefit from the growth in e-commerce and logistics sectors. On the other hand, Realty Income is known for its diverse portfolio of retail properties, providing stability and consistent income through long-term triple-net leases. Both stocks have their own strengths and considerations, making them appealing choices for investors seeking exposure to real estate assets.

STAG Industrial or Realty Income?

When comparing STAG Industrial and Realty Income, 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 STAG Industrial and Realty Income.

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. STAG Industrial has a dividend yield of 4.12%, while Realty Income has a dividend yield of 5.65%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. STAG Industrial reports a 5-year dividend growth of 0.71% year and a payout ratio of 152.42%. On the other hand, Realty Income reports a 5-year dividend growth of 3.00% year and a payout ratio of 291.48%.

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 STAG Industrial P/E ratio at 36.34 and Realty Income's P/E ratio at 54.78. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. STAG Industrial P/B ratio is 1.98 while Realty Income's P/B ratio is 1.25.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, STAG Industrial has seen a 5-year revenue growth of 0.16%, while Realty Income's is 0.28%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with STAG Industrial's ROE at 5.39% and Realty Income's ROE at 2.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $35.46 for STAG Industrial and $54.77 for Realty Income. Over the past year, STAG Industrial's prices ranged from $34.09 to $41.63, with a yearly change of 22.12%. Realty Income's prices fluctuated between $50.65 and $64.88, with a yearly change of 28.09%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.