EPRT vs O: How Essential Properties Realty Trust and Realty Income Corporation Compare (2026)
Last updated August 2026
Short answer
EPRT and O are similarly sized, but EPRT trades noticeably cheaper on forward earnings (22.62x vs 37.41x): the market is paying up for O's profile and pricing EPRT more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
EPRT vs O: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | EPRT | O | What it tells you |
|---|---|---|---|
| Forward P/E | 22.62 | 37.41 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 24.26 | 52.35 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.90 | 0.73 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 40% of range | 66% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 1.54 | 1.52 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: EPRT is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how EPRT and O affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. EPRT and O share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined EPRT and O exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Essential Properties Realty Trust (EPRT) do?
Essential Properties Realty Trust, Inc. (NYSE: EPRT), headquartered in Princeton, New Jersey, is an internally managed real estate investment trust that acquires, owns, and manages primarily single-tenant properties net leased on a long-term basis. Its niche is sale-leaseback financing for middle-market companies: EPRT buys the real estate a private operator uses (a chain of car washes, quick-service restaurants, or medical clinics, for example) and leases it back under a long triple-net lease, where the tenant pays taxes, insurance, and maintenance. As of March 31, 2026, the portfolio held 2,417 freestanding properties totaling roughly 27.3 million square feet, was 99.7% leased across 662 different tenant concepts in 48 states, and carried a weighted average lease term of about 14.6 years with a weighted average rent coverage ratio near 3.5x. Roughly 92% of cash annualized base rent comes from service-oriented and experience-based tenants that management views as relatively insulated from e-commerce.
What does Realty Income Corporation (O) do?
Realty Income Corporation (NYSE: O), founded in 1969 and headquartered in San Diego, California, is a real estate investment trust that acquires, owns, and manages freestanding, single-tenant commercial properties leased under long-term triple-net agreements. Under a triple-net lease, tenants bear property taxes, insurance, and maintenance costs, making revenue highly predictable; rental income forms over 99% of total revenue. As of Q1 2026, the portfolio spanned more than 15,600 properties leased to approximately 1,600 clients across 92 industries in all 50 U.S. states, the United Kingdom, and seven other European countries. Top tenants include essential and service-oriented businesses such as Walgreens, Dollar General, Dollar Tree, FedEx, Walmart, and CVS, which are considered relatively resistant to e-commerce disruption. The company earns its return by purchasing properties at cap rates meaningfully above its cost of capital and collecting contractual rent escalators over weighted average remaining lease terms of roughly nine years.
EPRT vs O: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- EPRT drivers: Sale-leaseback niche with middle-market operators; Above-peer AFFO-per-share and dividend growth.
- O drivers: Monthly dividend compounding with a 30-plus year growth streak; Accelerating global acquisition pipeline at attractive spreads.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Interest-rate sensitivity is the primary structural risk: as a yield-oriented REIT, EPRT's share price moves inversely with Treasury yields, and higher rates raise its borrowing costs and can narrow the spread between acquisition cap rates and its cost of capital. For O, interest rate sensitivity is the primary structural risk: O's share price is materially affected by movements in Treasury yields because investors compare its dividend yield against risk-free alternatives, and rising rates also increase borrowing costs that narrow acquisition spreads.
EPRT or O: which should you pick?
EPRT vs O: the full fundamentals
EPRT. REITs are most meaningfully valued on AFFO rather than GAAP earnings, because heavy depreciation makes net income a poor proxy for cash generation. At a mid-2026 share price near $31 and the roughly $2.03 midpoint of 2026 AFFO guidance, EPRT trades at about 15x forward AFFO, a level that reflects its faster-than-peer growth but is below where the stock traded in lower-rate periods. The forward dividend of about $1.28 implies a yield near 4.1%, with a payout ratio comfortably covered by AFFO. Investors weighing the valuation typically compare EPRT's growth premium against the extra tenant-credit and capital-markets risk that comes with financing smaller, private operators.
O. REITs are most meaningfully valued on AFFO rather than GAAP earnings, because depreciation charges make net income a poor proxy for cash generation; on a price-to-AFFO basis, O trades at roughly 14x forward AFFO using the midpoint of 2026 guidance and the late-June 2026 share price near $62, which is in line with its historical range but a premium to smaller net-lease peers. The ~5.2% dividend yield is among the highest O has offered in the past decade, reflecting both share-price compression from elevated interest rates and management's consistent payout increases. Investors weighing the valuation should note that the 2026 investment volume guidance of $9.5 billion, if executed at the recent ~7% cash yield, is the most aggressive acquisition posture in the company's history and could drive meaningful AFFO per share acceleration, but also increases sensitivity to any deterioration in capital market access.
Headline figures (approximate, July 2026): EPRT shows revenue (ttm) ~$600 million, revenue (q1 2026, most recent quarter) ~$158.8 million (+23% YoY), affo per share (q1 2026) ~$0.50 (+11% YoY), 2026 affo per share guidance ~$2.00 to $2.05; O shows revenue (fy 2025) ~$5.76 billion, affo per share (fy 2025, full year) ~$4.28, affo per share (q1 2026, most recent quarter) ~$1.13 (+6.6% YoY), 2026 affo per share guidance (raised after q1 2026) $4.41 to $4.44.
The bottom line: EPRT vs O
EPRT and O are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined EPRT and O exposure against your real portfolio. It is not an investment adviser.
Wondering how EPRT or O fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Essential Properties Realty Trust with AI
Connect the broker you already use and ask Walnut's AI how EPRT fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between EPRT and O?
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Essential Properties Realty Trust, Inc. Realty Income Corporation (NYSE: O), founded in 1969 and headquartered in San Diego, California, is a real estate investment trust that acquires, owns, and manages freestanding, single-tenant commercial properties leased under long-term triple-net agreements. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is EPRT or O the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, EPRT or O?
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On forward P/E (as of August 2026), EPRT trades at 22.62x and O at 37.41x, so EPRT is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both EPRT and O?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of EPRT vs O?
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EPRT: Interest-rate sensitivity is the primary structural risk: as a yield-oriented REIT, EPRT's share price moves inversely with Treasury yields, and higher rates raise its borrowing costs and can narrow the spread between acquisition cap rates and its cost of capital. Tenant credit is a distinct concern because EPRT finances middle-market and often non-investment-grade operators, so a recession or sector-specific stress (for example in restaurants, fitness, or early childhood education) could raise vacancies and rent loss despite the current 3.5x coverage. The company relies on regular equity and debt issuance to fund growth, so a prolonged period of a depressed share price or closed capital markets would slow AFFO-per-share growth. Concentration in a handful of tenant concepts and reliance on continued deal flow at attractive yields add execution risk. Its smaller scale also means a higher cost of capital than the largest peers. O: Interest rate sensitivity is the primary structural risk: O's share price is materially affected by movements in Treasury yields because investors compare its dividend yield against risk-free alternatives, and rising rates also increase borrowing costs that narrow acquisition spreads. Tenant credit quality is a secondary concern, as a portion of credit losses has been traced to tenants acquired through recent M&A transactions, and retail bankruptcies or store-closure programs could pressure occupancy below its historically stable 98-plus percent level. Currency risk is growing as European investments expand, with local-currency debt only partially hedging revenue exposure. The stock trades at a GAAP P/E of roughly 52x (as of late June 2026), a significant premium to the broader REIT sector, meaning any disappointment in AFFO growth or guidance could weigh disproportionately on share price.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell EPRT or O; figures are approximate and dated (as of August 2026). Verify current data before investing.