Which High-Yield REIT Stock Is Cheaper, Federal Realty Investment Trust or Realty Income?
Both Federal Realty Investment Trust (NYSE: FRT) and Realty Income (NYSE: O) are among the most popular real estate investment trusts (REITs) on the stock market. Both companies have quality portfolios, are still managing to grow their business, and pay high-yield dividends. Not all REITs are created equal, though, and for me one of this pair is clearly the better investment on one particular valuation.A REIT is basically a landlord, so the revenue it draws from its properties is central to its operations and its value for investors. If you compare the two on a price-to-sales basis, the edge clearly belongs to Federal Realty. Its price-to-sales ratio is just over 6.6 while Realty Income's is 9.1. Continue reading
Both Federal Realty Investment Trust (NYSE: FRT) and Realty Income (NYSE: O) are among the most popular real estate investment trusts (REITs) on the stock market. Both companies have quality portfolios, are still managing to grow their business, and pay high-yield dividends.
Not all REITs are created equal, though, and for me one of this pair is clearly the better investment on one particular valuation.
A REIT is basically a landlord, so the revenue it draws from its properties is central to its operations and its value for investors. If you compare the two on a price-to-sales basis, the edge clearly belongs to Federal Realty. Its price-to-sales ratio is just over 6.6 while Realty Income's is 9.1.
