Critical Survey: Healthcare Realty Trust (NYSE:HR) and VICI Properties (NYSE:VICI)

Healthcare Realty Trust (NYSE:HR) and VICI Properties (NYSE:VICI) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Valuation and Earnings

This table compares Healthcare Realty Trust and VICI Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Realty Trust	$1.22 billion	4.33	-$278.26 million	($1.09)	-13.80
VICI Properties	$3.88 billion	8.70	$2.51 billion	$2.50	12.78

VICI Properties has higher revenue and earnings than Healthcare Realty Trust. Healthcare Realty Trust is trading at a lower price-to-earnings ratio than VICI Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Healthcare Realty Trust and VICI Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Realty Trust	1	4	0	0	1.80
VICI Properties	0	3	8	0	2.73

Healthcare Realty Trust currently has a consensus target price of $17.00, indicating a potential upside of 12.99%. VICI Properties has a consensus target price of $35.18, indicating a potential upside of 10.11%. Given Healthcare Realty Trust’s higher probable upside, research analysts clearly believe Healthcare Realty Trust is more favorable than VICI Properties.

Dividends

Healthcare Realty Trust pays an annual dividend of $1.24 per share and has a dividend yield of 8.2%. VICI Properties pays an annual dividend of $1.73 per share and has a dividend yield of 5.4%. Healthcare Realty Trust pays out -113.8% of its earnings in the form of a dividend. VICI Properties pays out 69.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. VICI Properties has increased its dividend for 4 consecutive years. Healthcare Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Healthcare Realty Trust and VICI Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthcare Realty Trust	-51.60%	-11.20%	-5.69%
VICI Properties	69.59%	10.24%	6.02%

Risk and Volatility

Healthcare Realty Trust has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, VICI Properties has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Insider & Institutional Ownership

97.7% of VICI Properties shares are owned by institutional investors. 0.4% of Healthcare Realty Trust shares are owned by insiders. Comparatively, 0.3% of VICI Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

VICI Properties beats Healthcare Realty Trust on 12 of the 17 factors compared between the two stocks.

About Healthcare Realty Trust

Healthcare Realty Trust, Inc. provides real estate investment services. It owns, leases, manages, acquires, finances, develops, and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States of America. The company was founded by David R. Emery in 1992 and is headquartered in Nashville, TN.

About VICI Properties

VICI Properties Inc. is an S&P 500 experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas, three of the most iconic entertainment facilities on the Las Vegas Strip. VICI Properties owns 93 experiential assets across a geographically diverse portfolio consisting of 54 gaming properties and 39 other experiential properties across the United States and Canada. The portfolio is comprised of approximately 127 million square feet and features approximately 60,300 hotel rooms and over 500 restaurants, bars, nightclubs and sportsbooks. Its properties are occupied by industry-leading gaming, leisure and hospitality operators under long-term, triple-net lease agreements. VICI Properties has a growing array of real estate and financing partnerships with leading operators in other experiential sectors, including Bowlero, Cabot, Canyon Ranch, Chelsea Piers, Great Wolf Resorts, Homefield, and Kalahari Resorts. VICI Properties also owns four championship golf courses and 33 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip. VICI Properties’ goal is to create the highest quality and most productive experiential real estate portfolio through a strategy of partnering with the highest quality experiential place makers and operators.