Head to Head Survey: FrontView REIT (NYSE:FVR) & NNN REIT (NYSE:NNN)

FrontView REIT (NYSE:FVR) and NNN REIT (NYSE:NNN) are both real estate companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Volatility and Risk

FrontView REIT has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, NNN REIT has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for FrontView REIT and NNN REIT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FrontView REIT	0	4	7	2	2.85
NNN REIT	2	8	4	0	2.14

FrontView REIT presently has a consensus target price of $22.50, indicating a potential upside of 25.03%. NNN REIT has a consensus target price of $47.53, indicating a potential upside of 15.01%. Given FrontView REIT’s stronger consensus rating and higher possible upside, research analysts clearly believe FrontView REIT is more favorable than NNN REIT.

Dividends

FrontView REIT pays an annual dividend of $0.86 per share and has a dividend yield of 4.8%. NNN REIT pays an annual dividend of $2.48 per share and has a dividend yield of 6.0%. FrontView REIT pays out 2,866.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NNN REIT pays out 121.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NNN REIT has raised its dividend for 35 consecutive years. NNN REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

90.0% of NNN REIT shares are held by institutional investors. 9.6% of FrontView REIT shares are held by company insiders. Comparatively, 0.9% of NNN REIT shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares FrontView REIT and NNN REIT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FrontView REIT	$69.27 million	6.35	-$3.83 million	$0.03	599.83
NNN REIT	$953.25 million	8.32	$389.78 million	$2.04	20.26

NNN REIT has higher revenue and earnings than FrontView REIT. NNN REIT is trading at a lower price-to-earnings ratio than FrontView REIT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares FrontView REIT and NNN REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FrontView REIT	2.10%	0.29%	0.17%
NNN REIT	40.35%	8.70%	4.06%

Summary

NNN REIT beats FrontView REIT on 11 of the 18 factors compared between the two stocks.

About FrontView REIT

FrontView REIT specializes in real estate investing.

About NNN REIT

NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December 31, 2023, the company owned 3,532 properties in 49 states with a gross leasable area of approximately 36.0 million square feet and a weighted average remaining lease term of 10.1 years. NNN is one of only three publicly traded REITs to have increased annual dividends for 34 or more consecutive years.