NTST vs O: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
NTST and O are similarly sized, but O trades noticeably cheaper on forward earnings (37.41x vs 52.32x): the market is paying up for NTST's profile and pricing O 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.
NTST 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 | NTST | O | What it tells you |
|---|---|---|---|
| Forward P/E | 52.32 | 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 | 153.21 | 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 | 0.82 | 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 | 81% 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 | 1.38 | 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: O 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 NTST 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. NTST 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 NTST 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 NETSTREIT Corp (NTST) do?
NETSTREIT Corp. is a Dallas-based real estate investment trust that acquires and owns single-tenant net-lease retail properties leased to what it calls e-commerce-resistant, necessity-based tenants such as dollar stores, discount retailers, drug stores, and quick-service and grocery operators. Under net leases the tenant covers taxes, insurance, and maintenance, so the REIT collects relatively predictable rent over long lease terms. As of the first quarter of 2026 the portfolio spanned roughly 804 investments at about 99.9% occupancy, with a weighted average lease term near 10 years and a majority of rent coming from investment-grade or investment-grade-profile tenants.
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.
NTST 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.
- NTST drivers: External growth from acquisitions; Balance-sheet conservatism.
- 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 rates are the dominant swing factor: higher rates raise NETSTREIT's cost of capital, can compress the spread on new acquisitions, and tend to pressure REIT share prices as income investors demand higher yields. 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.
NTST or O: which should you pick?
NTST vs O: the full fundamentals
NTST. NETSTREIT trades at a mid-teens multiple of AFFO, roughly in line with or modestly below larger net-lease peers, reflecting its smaller scale offset by low leverage and high occupancy. The 2026 AFFO guidance range of about $1.36 to $1.39 per share implies continued mid-single-digit per-share growth. Revenue rose sharply year-over-year (Q1 2026 revenue of about $57 million versus $46 million a year earlier) as the acquisition portfolio scaled.
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): NTST shows revenue (ttm) ~$210M, affo per share (2026 guidance) ~$1.36-$1.39, net income (q1 2026) ~$5.7M, market cap ~$1.9B; 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: NTST vs O
NTST 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 NTST and O exposure against your real portfolio. It is not an investment adviser.
Wondering how NTST 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 NETSTREIT Corp with AI
Connect the broker you already use and ask Walnut's AI how NTST 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 NTST and O?
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NETSTREIT Corp. 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 NTST 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, NTST or O?
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On forward P/E (as of August 2026), NTST trades at 52.32x and O at 37.41x, so O 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 NTST 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 NTST vs O?
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NTST: Interest rates are the dominant swing factor: higher rates raise NETSTREIT's cost of capital, can compress the spread on new acquisitions, and tend to pressure REIT share prices as income investors demand higher yields. Tenant credit is a second risk, since much of the rent comes from discount and drug-store formats (including names like Dollar General and, historically, Walgreens) whose ratings and store economics can weaken. As a relatively small REIT, NETSTREIT relies on regular equity and debt issuance to fund growth, which can dilute existing holders or become expensive if capital markets tighten. Occupancy is currently near full, so there is little upside from lease-up and meaningful downside if key tenants vacate or go bankrupt. Broader retail and consumer weakness could also slow acquisition pipelines and rent growth. 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 NTST or O; figures are approximate and dated (as of August 2026). Verify current data before investing.