SmartCentres Real Estate Investment Trust (OTCMKTS:CWYUF) vs. Realty Income (NYSE:O) Financial Review

SmartCentres Real Estate Investment Trust (OTCMKTS:CWYUF) and Realty Income (NYSE:O) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.

Profitability

This table compares SmartCentres Real Estate Investment Trust and Realty Income’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SmartCentres Real Estate Investment Trust	33.37%	4.41%	2.32%
Realty Income	16.77%	2.34%	1.32%

Valuation and Earnings

This table compares SmartCentres Real Estate Investment Trust and Realty Income”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SmartCentres Real Estate Investment Trust	$670.29 million	5.12	$172.78 million	$1.13	17.02
Realty Income	$5.27 billion	10.12	$860.77 million	$1.03	56.64

Realty Income has higher revenue and earnings than SmartCentres Real Estate Investment Trust. SmartCentres Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Realty Income, indicating that it is currently the more affordable of the two stocks.

Dividends

SmartCentres Real Estate Investment Trust pays an annual dividend of $1.35 per share and has a dividend yield of 7.0%. Realty Income pays an annual dividend of $3.23 per share and has a dividend yield of 5.5%. SmartCentres Real Estate Investment Trust pays out 119.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Realty Income pays out 313.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Realty Income has raised its dividend for 1 consecutive years. SmartCentres Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

70.8% of Realty Income shares are held by institutional investors. 20.9% of SmartCentres Real Estate Investment Trust shares are held by insiders. Comparatively, 0.1% of Realty Income shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

SmartCentres Real Estate Investment Trust has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Realty Income has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for SmartCentres Real Estate Investment Trust and Realty Income, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SmartCentres Real Estate Investment Trust	0	0	0	1	4.00
Realty Income	0	11	3	0	2.21

Realty Income has a consensus price target of $62.58, indicating a potential upside of 7.27%. Given Realty Income’s higher possible upside, analysts clearly believe Realty Income is more favorable than SmartCentres Real Estate Investment Trust.

Summary

SmartCentres Real Estate Investment Trust beats Realty Income on 10 of the 18 factors compared between the two stocks.

About SmartCentres Real Estate Investment Trust

SmartCentres is one of Canada’s largest fully integrated REITs, with a best-in-class and growing mixed-use portfolio featuring 191 strategically located properties in communities across the country. SmartCentres has approximately $12.0 billion in assets and owns 35.0 million square feet of income producing value-oriented retail and first-class office properties with 98.5% in place and committed occupancy, on 3,500 acres of owned land across Canada.

About Realty Income

Realty Income, The Monthly Dividend Company, is an S&P 500 company and member of the S&P 500 Dividend Aristocrats index. We invest in people and places to deliver dependable monthly dividends that increase over time. The company is structured as a real estate investment trust (“REIT”), and its monthly dividends are supported by the cash flow from over 15,450 real estate properties (including properties acquired in the Spirit merger in January 2024) primarily owned under long-term net lease agreements with commercial clients. To date, the company has declared 644 consecutive monthly dividends on its shares of common stock throughout its 55-year operating history and increased the dividend 123 times since Realty Income’s public listing in 1994 (NYSE: O).