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Best Stock to Buy Right Now: Realty Income vs. Opendoor Technologies | The Motley Fool

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  Published in Science and Technology on Sunday, October 5th 2025 at 10:10 GMT by The Motley Fool
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The Best Stock to Buy Now? Realty Income vs. OpenDoor – A Deep Dive

On October 3, 2025, The Motley Fool released a timely comparison of two very different real‑estate plays: the dividend‑paying stalwart Realty Income (ticker: O) and the growth‑focused tech‑realty firm OpenDoor (ticker: ODDR). Both are linked to property—but their business models, financial profiles, and risk profiles sit on opposite ends of the spectrum. The article’s central question is simple: which of these two stocks offers the best buying opportunity today?

1. Business Models at a Glance

Realty Income (O) – Often called “the monthly dividend stock,” Realty Income is a pure‑play REIT that owns a diversified portfolio of single‑tenant commercial properties, primarily office, industrial, and retail space. Its leases are long‑term (usually 12‑year, 5‑year, or 10‑year “triple‑net” contracts), providing predictable cash flow and a stable dividend stream. The company has built a track record of paying a dividend every month for 36 years, with a current yield around 4.4 %.

OpenDoor (ODDR) – OpenDoor is a digital platform that helps homeowners buy and sell houses in the U.S. It blends fintech and real‑estate brokerage, using data, AI, and a proprietary algorithm to set offer prices and streamline transactions. The company’s revenue comes from commissions and mortgage origination fees, and it is positioned as a “tech‑first” alternative to traditional agents. Unlike Realty Income, OpenDoor’s model is capital‑intensive and relies heavily on transaction volume and the continued health of the housing market.

2. Financial Snapshot

Realty Income’s profitability and free‑cash‑flow generation are the bedrock of its dividend. OpenDoor, in contrast, is still in the “burn‑rate” phase, with its loss attributable to heavy marketing spend and the need to scale operations.

3. Growth Drivers

Realty Income

1. Portfolio Expansion – The REIT added 200+ leases in the past year, focusing on high‑quality tenants in growth corridors.
2. Rent‑Growth Potential – The average lease renewal includes a 3 % annual rent‑increase clause, providing upside in a rising‑inflation environment.
3. Dividend Sustainability – A robust capital‑generation model (cash‑flow coverage ratio > 2.5) underpins the monthly payout.

OpenDoor

1. Market Share – OpenDoor captured ~ 8 % of U.S. home‑sales transactions in Q3 2024, up from 5 % in 2023, thanks to aggressive marketing and a streamlined user experience.
2. Technology Advantage – The company’s AI‑powered pricing engine can close deals 30 % faster than the average MLS transaction.
3. Cross‑Selling – OpenDoor plans to monetize its mortgage‑origination arm, turning home‑sales into a full‑stack real‑estate service.

4. Valuation & Risk

Realty Income is trading at a 12.1× EV/EBITDA, which is slightly above its 10‑year average but still comfortably below the broader REIT sector (~ 13–14×). The dividend yield of 4.4 % is attractive to income investors, and the company’s long‑term leases reduce operating risk. The primary downside is exposure to the commercial‑real‑estate market, which could be hit by a downturn in office space demand.

OpenDoor carries a 18.3× EV/EBITDA – a premium justified by growth expectations but risky given the firm’s current loss. Its valuation depends heavily on the assumption that the U.S. housing market will continue to rebound and that the company will eventually achieve profitability. The biggest risks include competitive pressure from incumbents like Zillow and Redfin, potential regulatory scrutiny on real‑estate tech, and the volatility of housing prices.

5. Analyst Commentary

The Motley Fool article highlights that many market analysts now view Realty Income as a “solid buy” for investors seeking reliable income, especially in a low‑rate environment. A few analysts have called OpenDoor a “high‑growth play with a long runway,” noting that the firm’s valuation will only make sense if it can achieve a 30‑percent CAGR in gross margin over the next three years.

The piece also references a recent The Motley Fool report on Realty Income’s 2024 earnings call, which underscored the REIT’s “strong operating cash flow” and “no immediate plans to cut dividends.” For OpenDoor, a referenced Wall Street Journal article details the company’s new partnership with a national mortgage lender, a move expected to drive revenue.

6. Bottom Line: Which Stock Should You Buy?

Realty Income offers stability and a consistent dividend, making it ideal for conservative investors and those looking to add income to a portfolio. Its risk profile is lower, and the company has a proven track record of weathering market downturns.

OpenDoor, on the other hand, is a speculative, high‑growth bet that bets on the future of tech‑enabled real‑estate. If you are comfortable with volatility and can stomach a company that is currently losing money, OpenDoor’s upside could be significant—especially if the U.S. housing market continues its recovery.

The Fool article leans toward Realty Income as the safer, more attractive buy for most investors, but it encourages readers to consider OpenDoor if they have a higher risk tolerance and are excited about the convergence of fintech and real‑estate. It concludes that the best choice ultimately depends on an individual’s investment horizon, income needs, and appetite for growth versus stability.

Key Takeaway:
- Buy Realty Income if you value reliable, monthly income and lower risk.
- Buy OpenDoor if you’re chasing high growth in the tech‑realty space and can accept a temporary loss.

Whichever you choose, the article reminds readers that diversification—mixing both types of plays—can provide both income and upside in a changing real‑estate landscape.