Reviewing InvenTrust Properties (NYSE:IVT) and Realty Income (NYSE:O)

InvenTrust Properties (NYSE:IVT) and Realty Income (NYSE:O) are both real estate companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for InvenTrust Properties and Realty Income, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InvenTrust Properties	0	1	4	1	3.00
Realty Income	1	8	7	1	2.47

InvenTrust Properties currently has a consensus price target of $35.67, suggesting a potential upside of 16.79%. Realty Income has a consensus price target of $66.23, suggesting a potential upside of 19.33%. Given Realty Income’s higher probable upside, analysts plainly believe Realty Income is more favorable than InvenTrust Properties.

Institutional & Insider Ownership

61.7% of InvenTrust Properties shares are held by institutional investors. Comparatively, 70.8% of Realty Income shares are held by institutional investors. 0.7% of InvenTrust Properties shares are held by company insiders. Comparatively, 0.1% of Realty Income shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

InvenTrust Properties has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Realty Income has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.

Profitability

This table compares InvenTrust Properties and Realty Income’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InvenTrust Properties	4.80%	0.85%	0.53%
Realty Income	20.93%	3.12%	1.72%

Valuation and Earnings

This table compares InvenTrust Properties and Realty Income”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InvenTrust Properties	$317.26 million	7.51	$111.42 million	$0.20	152.70
Realty Income	$5.75 billion	9.13	$1.06 billion	$1.37	40.51

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

Dividends

InvenTrust Properties pays an annual dividend of $1.00 per share and has a dividend yield of 3.3%. Realty Income pays an annual dividend of $3.25 per share and has a dividend yield of 5.9%. InvenTrust Properties pays out 500.0% 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 237.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. InvenTrust Properties has increased its dividend for 4 consecutive years and Realty Income has increased its dividend for 31 consecutive years. Realty Income is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Realty Income beats InvenTrust Properties on 13 of the 17 factors compared between the two stocks.

About InvenTrust Properties

InvenTrust Properties Corp. (the “Company,” “IVT,” or “InvenTrust”) is a premier Sun Belt, multi-tenant essential retail REIT that owns, leases, redevelops, acquires and manages grocery-anchored neighborhood and community centers as well as high-quality power centers that often have a grocery component. Management pursues the Company’s business strategy by acquiring retail properties in Sun Belt markets, opportunistically disposing of retail properties, maintaining a flexible capital structure, and enhancing environmental, social and governance (“ESG”) practices and standards. A trusted, local operator bringing real estate expertise to its tenant relationships, IVT has built a strong reputation with market participants across its portfolio. IVT is committed to leadership in ESG practices and has been a Global Real Estate Sustainability Benchmark (“GRESB”) member since 2013.

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).