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Better Buy: Realty Income vs. SunPower

By Patrick Morris and Joel South – Mar 19, 2014 at 12:40PM

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We've collected the most popular companies among Fool.com readers and put them head-to-head in a good old-fashioned challenge we're calling The Motley Fool Better-Buy Tournament.

In today's ­first-round matchup of The Motley Fool Better-Buy Tournament, Realty Income squares off against SunPower in a battle to determine which stock is the better buy now. The 64-company tournament pits two Motley Fool analysts against each other as they make the case for their stocks, with the winner determined by you, the readers.

Any company that boldly labels itself "the monthly dividend company," will certainly pique the interest of many investors looking for income, but it turns out Realty Income (O -1.13%) should be considered by all. That it has increased its dividend for 66 consecutive quarters is eye-opening and appealing, but so too is the fact that its ever-important adjusted funds from operations rose by 17% last year. Throw in a diverse revenue stream from a variety of businesses, as well as a great management team, and there is no denying "the monthly dividend company" is your best buy for March.

Solar installation had its best year in the United States in 2013, growing generation capacity by 41%. SunPower (SPWR 7.88%) is uniquely positioned to take advantage of both U.S. residential and utility scale solar growth, in additional to a solid backlog of international projects. Better still, SunPower is the industry leading manufacturer of efficient solar panels, allowing the company to charge a premium its customers are happy to pay. Margins continue to improve in the utility business, and with more manufacturing capacity on its way, Motley Fool analyst Joel South believes SunPower should see exponential growth for years to come.

Watch these analysts square off in the video below and then vote for a winner. Then check out the other companies in the Motley Fool Better-Buy Bracket

This year's winning stock?
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Cast your vote in the poll below the video!

Joel South owns shares of SunPower. Patrick Morris has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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