Alpine Income Property Trust (NYSE:PINE) versus Realty Income (NYSE:O) Financial Analysis

Alpine Income Property Trust (NYSE:PINE) and Realty Income (NYSE:O) are both real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Profitability

This table compares Alpine Income Property Trust and Realty Income’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alpine Income Property Trust	16.55%	3.68%	1.64%
Realty Income	21.85%	3.27%	1.80%

Institutional & Insider Ownership

60.5% of Alpine Income Property Trust shares are held by institutional investors. Comparatively, 70.8% of Realty Income shares are held by institutional investors. 0.6% of Alpine Income Property 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, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Alpine Income Property Trust and Realty Income, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alpine Income Property Trust	0	3	5	3	3.00
Realty Income	1	10	5	2	2.44

Alpine Income Property Trust currently has a consensus target price of $20.50, suggesting a potential upside of 22.42%. Realty Income has a consensus target price of $71.69, suggesting a potential upside of 21.84%. Given Alpine Income Property Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Alpine Income Property Trust is more favorable than Realty Income.

Dividends

Alpine Income Property Trust pays an annual dividend of $1.28 per share and has a dividend yield of 7.6%. Realty Income pays an annual dividend of $3.28 per share and has a dividend yield of 5.6%. Alpine Income Property Trust pays out 278.3% 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 226.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alpine Income Property Trust has raised its dividend for 3 consecutive years and Realty Income has raised its dividend for 31 consecutive years.

Earnings and Valuation

This table compares Alpine Income Property Trust and Realty Income”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alpine Income Property Trust	$60.53 million	4.96	-$2.66 million	$0.46	36.40
Realty Income	$6.07 billion	9.22	$1.06 billion	$1.45	40.58

Realty Income has higher revenue and earnings than Alpine Income Property Trust. Alpine Income Property 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.

Volatility and Risk

Alpine Income Property Trust has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Realty Income has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Summary

Realty Income beats Alpine Income Property Trust on 11 of the 17 factors compared between the two stocks.

About Alpine Income Property Trust

Alpine Income Property Trust, Inc. is a real estate investment trust that owns and manages income-producing commercial properties. Its portfolio focuses primarily on single-tenant retail properties leased to national and regional businesses, along with select other commercial real estate. Many of the company’s properties are leased under net lease agreements, in which tenants pay some or all property expenses in addition to rent. Alpine seeks to generate rental income through leases with businesses operating across a range of industries.

About Realty Income

Realty Income Corporation is a real estate investment trust (REIT) that owns and manages commercial properties leased to businesses. Its portfolio includes retail, industrial, gaming, and other properties, typically leased under long-term net lease agreements in which tenants are responsible for many property operating expenses. Founded in 1969, Realty Income is known as “The Monthly Dividend Company” for its monthly dividend payments. The company serves tenants across the United States and has expanded its property portfolio into Europe.