Head to Head Survey: NNN REIT (NYSE:NNN) vs. FrontView REIT (NYSE:FVR)

NNN REIT (NYSE:NNN) and FrontView REIT (NYSE:FVR) are both real estate companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Insider and Institutional Ownership

90.0% of NNN REIT shares are held by institutional investors. 0.9% of NNN REIT shares are held by insiders. Comparatively, 9.6% of FrontView REIT shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

NNN REIT has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, FrontView REIT has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Dividends

NNN REIT pays an annual dividend of $2.48 per share and has a dividend yield of 6.0%. FrontView REIT pays an annual dividend of $0.86 per share and has a dividend yield of 4.8%. NNN REIT pays out 121.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. FrontView REIT pays out 2,866.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NNN REIT has raised its dividend for 35 consecutive years. NNN REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for NNN REIT and FrontView REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NNN REIT	2	8	4	0	2.14
FrontView REIT	0	4	7	2	2.85

NNN REIT presently has a consensus price target of $47.53, suggesting a potential upside of 15.15%. FrontView REIT has a consensus price target of $22.50, suggesting a potential upside of 25.64%. Given FrontView REIT’s stronger consensus rating and higher possible upside, analysts clearly believe FrontView REIT is more favorable than NNN REIT.

Profitability

This table compares NNN REIT and FrontView REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NNN REIT	40.35%	8.70%	4.06%
FrontView REIT	2.10%	0.29%	0.17%

Valuation & Earnings

This table compares NNN REIT and FrontView REIT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NNN REIT	$926.21 million	8.55	$389.78 million	$2.04	20.23
FrontView REIT	$67.11 million	6.53	-$3.83 million	$0.03	596.93

NNN REIT has higher revenue and earnings than FrontView REIT. NNN REIT is trading at a lower price-to-earnings ratio than FrontView REIT, indicating that it is currently the more affordable of the two stocks.

Summary

NNN REIT beats FrontView REIT on 11 of the 18 factors compared between the two stocks.

About NNN REIT

NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December 31, 2023, the company owned 3,532 properties in 49 states with a gross leasable area of approximately 36.0 million square feet and a weighted average remaining lease term of 10.1 years. NNN is one of only three publicly traded REITs to have increased annual dividends for 34 or more consecutive years.

About FrontView REIT

FrontView REIT specializes in real estate investing.