W. P. Carey vs Realty Income Which Performs Better?

W. P. Carey and Realty Income are two well-known real estate investment trusts (REITs) that offer investors the opportunity to earn income through property investments. W. P. Carey focuses on diversified real estate assets across various sectors, while Realty Income primarily invests in retail properties. Both companies have a history of providing consistent dividends to their shareholders. Investors looking for stable income and potential capital appreciation may consider investing in these REITs, but should carefully evaluate the risks and opportunities associated with each company.

W. P. Carey or Realty Income?

When comparing W. P. Carey 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 W. P. Carey 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. W. P. Carey has a dividend yield of 6.09%, 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. W. P. Carey reports a 5-year dividend growth of -0.11% year and a payout ratio of 143.85%. 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 W. P. Carey P/E ratio at 22.50 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. W. P. Carey P/B ratio is 1.46 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, W. P. Carey has seen a 5-year revenue growth of 0.07%, while Realty Income's is 0.28%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with W. P. Carey's ROE at 6.45% 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 $55.70 for W. P. Carey and $54.77 for Realty Income. Over the past year, W. P. Carey's prices ranged from $53.09 to $67.40, with a yearly change of 26.95%. 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.