Better Buy: Realty Income vs. Simon Property Group

To say that Realty Income (NYSE: O) and Simon Property Group (NYSE: SPG) are both retail-focused real estate investment trusts, or REITs, would be like saying that Apple (NASDAQ: AAPL) and NVIDIA (NASDAQ: NVDA) are both tech companies. Sure, they're in the same general field, but their businesses are very different.

Realty Income is generally the more stable of the two and is largely immune to the headwinds facing the retail sector. However, you'll pay a stiff premium for it. On the other hand, Simon Property Group is exposed to some of the "wrong" areas of retail, and its business model is very much in transition, but its stock trades at a steep discount.

With that in mind, here's a rundown of the key differences between these two businesses and a dive into the price you'll pay for each.

Source Fool.com