Critical Analysis: Curbline Properties (NYSE:CURB) versus Realty Income (NYSE:O)

Curbline Properties (NYSE:CURB) and Realty Income (NYSE:O) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Institutional & Insider Ownership

70.8% of Realty Income shares are held by institutional investors. 8.6% of Curbline Properties shares are held by insiders. Comparatively, 0.1% of Realty Income shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Curbline Properties and Realty Income”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Curbline Properties	$120.88 million	20.20	$10.26 million	$0.40	57.94
Realty Income	$5.55 billion	9.37	$860.77 million	$1.08	52.30

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Curbline Properties	25.51%	2.19%	1.94%
Realty Income	16.77%	2.34%	1.32%

Analyst Ratings

This is a summary of current recommendations and price targets for Curbline Properties and Realty Income, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Curbline Properties	0	3	3	0	2.50
Realty Income	0	11	3	0	2.21

Curbline Properties currently has a consensus target price of $27.20, suggesting a potential upside of 17.37%. Realty Income has a consensus target price of $62.33, suggesting a potential upside of 10.35%. Given Curbline Properties’ stronger consensus rating and higher probable upside, research analysts plainly believe Curbline Properties is more favorable than Realty Income.

Dividends

Curbline Properties pays an annual dividend of $0.64 per share and has a dividend yield of 2.8%. Realty Income pays an annual dividend of $3.23 per share and has a dividend yield of 5.7%. Curbline Properties pays out 160.0% 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 299.1% 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. Realty Income is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Curbline Properties beats Realty Income on 8 of the 15 factors compared between the two stocks.

About Curbline Properties

Curbline Properties Corp. is a real estate investment trust which is an owner and manager of convenience shopping centers positioned on the curbline of well-trafficked intersections and major vehicular corridors in suburban. Curbline Properties Corp. is based in NEW YORK.

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).