ARE vs. O: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARE and O, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
O’s market capitalization of 52.09 billion USD is significantly greater than ARE’s 13.31 billion USD, highlighting its more substantial market valuation.
ARE’s beta of 1.27 points to significantly higher volatility compared to O (beta: 0.77), suggesting ARE has greater potential for both gains and losses relative to market movements.
| Symbol | ARE | O |
|---|---|---|
| Company Name | Alexandria Real Estate Equities, Inc. | Realty Income Corporation |
| Country | US | US |
| Sector | Real Estate | Real Estate |
| Industry | REIT - Office | REIT - Retail |
| CEO | Peter M. Moglia | Sumit Roy |
| Price | 76.92 USD | 57.68 USD |
| Market Cap | 13.31 billion USD | 52.09 billion USD |
| Beta | 1.27 | 0.77 |
| Exchange | NYSE | NYSE |
| IPO Date | May 28, 1997 | October 18, 1994 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARE and O by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ARE
0.72%
REIT - Office Industry
- Max
- 9.40%
- Q3
- 3.15%
- Median
- 0.71%
- Q1
- -2.53%
- Min
- -10.33%
Return on Equity is often not a primary performance indicator in the REIT - Office industry.
O
2.52%
REIT - Retail Industry
- Max
- 21.92%
- Q3
- 12.41%
- Median
- 7.21%
- Q1
- 1.78%
- Min
- -4.50%
Return on Equity is often not a primary performance indicator in the REIT - Retail industry.
Return on Invested Capital
ARE
194.97%
REIT - Office Industry
- Max
- 5.21%
- Q3
- 3.70%
- Median
- 2.50%
- Q1
- 1.66%
- Min
- 0.56%
Return on Invested Capital is often not a primary measure of capital efficiency in the REIT - Office industry.
O
3.27%
REIT - Retail Industry
- Max
- 10.68%
- Q3
- 6.77%
- Median
- 5.71%
- Q1
- 3.03%
- Min
- 1.32%
Return on Invested Capital is often not a primary measure of capital efficiency in the REIT - Retail industry.
Net Profit Margin
ARE
5.70%
REIT - Office Industry
- Max
- 21.26%
- Q3
- 7.69%
- Median
- 3.16%
- Q1
- -9.27%
- Min
- -30.12%
In the REIT - Office industry, Net Profit Margin is often not the primary profitability metric.
O
18.15%
REIT - Retail Industry
- Max
- 45.09%
- Q3
- 28.32%
- Median
- 18.15%
- Q1
- 10.14%
- Min
- -12.26%
In the REIT - Retail industry, Net Profit Margin is often not the primary profitability metric.
Operating Profit Margin
ARE
38.61%
REIT - Office Industry
- Max
- 38.61%
- Q3
- 26.61%
- Median
- 20.01%
- Q1
- 11.93%
- Min
- -1.11%
In the REIT - Office industry, Operating Profit Margin is often not the primary measure of operational efficiency.
O
44.38%
REIT - Retail Industry
- Max
- 65.94%
- Q3
- 46.00%
- Median
- 35.03%
- Q1
- 24.10%
- Min
- 5.51%
In the REIT - Retail industry, Operating Profit Margin is often not the primary measure of operational efficiency.
Profitability at a Glance
| Symbol | ARE | O |
|---|---|---|
| Return on Equity (TTM) | 0.72% | 2.52% |
| Return on Assets (TTM) | 0.37% | 1.40% |
| Return on Invested Capital (TTM) | 194.97% | 3.27% |
| Net Profit Margin (TTM) | 5.70% | 18.15% |
| Operating Profit Margin (TTM) | 38.61% | 44.38% |
| Gross Profit Margin (TTM) | 37.76% | 92.67% |
Financial Strength
Current Ratio
ARE
--
REIT - Office Industry
- Max
- 4.34
- Q3
- 2.61
- Median
- 1.46
- Q1
- 0.88
- Min
- 0.01
For the REIT - Office industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
O
1.45
REIT - Retail Industry
- Max
- 3.39
- Q3
- 1.98
- Median
- 0.71
- Q1
- 0.45
- Min
- 0.13
For the REIT - Retail industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
Debt-to-Equity Ratio
ARE
--
REIT - Office Industry
- Max
- 2.25
- Q3
- 1.66
- Median
- 1.33
- Q1
- 0.95
- Min
- 0.63
Debt-to-Equity Ratio data for ARE is currently unavailable.
O
0.71
REIT - Retail Industry
- Max
- 1.99
- Q3
- 1.99
- Median
- 1.03
- Q1
- 0.77
- Min
- 0.07
Falling into the lower quartile for the REIT - Retail industry, O’s Debt-to-Equity Ratio of 0.71 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio
ARE
6.43
REIT - Office Industry
- Max
- 2.60
- Q3
- 1.69
- Median
- 1.28
- Q1
- 0.62
- Min
- -0.11
With an Interest Coverage Ratio of 6.43, ARE demonstrates a superior capacity to service its debt, placing it well above the typical range for the REIT - Office industry. This stems from either robust earnings or a conservative debt load.
O
2.34
REIT - Retail Industry
- Max
- 4.88
- Q3
- 2.85
- Median
- 2.16
- Q1
- 1.45
- Min
- 0.24
O’s Interest Coverage Ratio of 2.34 is positioned comfortably within the norm for the REIT - Retail industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ARE | O |
|---|---|---|
| Current Ratio (TTM) | -- | 1.45 |
| Quick Ratio (TTM) | -- | 1.45 |
| Debt-to-Equity Ratio (TTM) | -- | 0.71 |
| Debt-to-Asset Ratio (TTM) | -- | 0.39 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.23 | 6.34 |
| Interest Coverage Ratio (TTM) | 6.43 | 2.34 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARE and O. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ARE
6.84%
REIT - Office Industry
- Max
- 14.12%
- Q3
- 6.26%
- Median
- 4.71%
- Q1
- 2.62%
- Min
- 0.00%
With a Dividend Yield of 6.84%, ARE offers a more attractive income stream than most of its peers in the REIT - Office industry, signaling a strong commitment to shareholder returns.
O
5.98%
REIT - Retail Industry
- Max
- 10.82%
- Q3
- 5.31%
- Median
- 4.63%
- Q1
- 4.01%
- Min
- 0.00%
With a Dividend Yield of 5.98%, O offers a more attractive income stream than most of its peers in the REIT - Retail industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
ARE
492.05%
REIT - Office Industry
- Max
- 1,116.08%
- Q3
- 556.10%
- Median
- 233.84%
- Q1
- 123.25%
- Min
- 49.88%
ARE’s Dividend Payout Ratio of 492.05% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
O
283.37%
REIT - Retail Industry
- Max
- 423.00%
- Q3
- 209.73%
- Median
- 147.41%
- Q1
- 110.19%
- Min
- 11.52%
O’s Dividend Payout Ratio of 283.37% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
| Symbol | ARE | O |
|---|---|---|
| Dividend Yield (TTM) | 6.84% | 5.98% |
| Dividend Payout Ratio (TTM) | 492.05% | 283.37% |
Valuation
Price-to-Earnings Ratio
ARE
95.37
REIT - Office Industry
- Max
- 90.97
- Q3
- 72.34
- Median
- 44.07
- Q1
- 23.31
- Min
- 19.29
The P/E Ratio is often not the primary metric for valuation in the REIT - Office industry.
O
52.57
REIT - Retail Industry
- Max
- 61.28
- Q3
- 51.98
- Median
- 26.77
- Q1
- 22.01
- Min
- 1.22
The P/E Ratio is often not the primary metric for valuation in the REIT - Retail industry.
Forward P/E to Growth Ratio
ARE
-0.95
REIT - Office Industry
- Max
- 24.48
- Q3
- 14.97
- Median
- 1.22
- Q1
- 0.24
- Min
- 0.04
The Forward PEG Ratio is often not a primary valuation metric in the REIT - Office industry.
O
-0.53
REIT - Retail Industry
- Max
- 28.54
- Q3
- 16.17
- Median
- 7.98
- Q1
- 4.29
- Min
- 0.21
The Forward PEG Ratio is often not a primary valuation metric in the REIT - Retail industry.
Price-to-Sales Ratio
ARE
5.51
REIT - Office Industry
- Max
- 5.80
- Q3
- 5.05
- Median
- 3.85
- Q1
- 2.27
- Min
- 1.19
ARE’s P/S Ratio of 5.51 is in the upper echelon for the REIT - Office industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
O
9.66
REIT - Retail Industry
- Max
- 12.50
- Q3
- 8.72
- Median
- 6.69
- Q1
- 5.52
- Min
- 1.52
O’s P/S Ratio of 9.66 is in the upper echelon for the REIT - Retail industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
ARE
0.60
REIT - Office Industry
- Max
- 2.09
- Q3
- 1.38
- Median
- 0.98
- Q1
- 0.74
- Min
- 0.14
ARE’s P/B Ratio of 0.60 is in the lower quartile for the REIT - Office industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
O
1.32
REIT - Retail Industry
- Max
- 2.71
- Q3
- 2.52
- Median
- 1.58
- Q1
- 1.33
- Min
- 0.99
O’s P/B Ratio of 1.32 is in the lower quartile for the REIT - Retail industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | ARE | O |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 95.37 | 52.57 |
| Forward PEG Ratio (TTM) | -0.95 | -0.53 |
| Price-to-Sales Ratio (P/S, TTM) | 5.51 | 9.66 |
| Price-to-Book Ratio (P/B, TTM) | 0.60 | 1.32 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 9.70 | 14.54 |
| EV-to-EBITDA (TTM) | 6.16 | 18.47 |
| EV-to-Sales (TTM) | 5.32 | 14.71 |