VICI Properties (NYSE:VICI – Get Free Report) and SBA Communications (NASDAQ:SBAC – Get Free Report) are both large-cap real estate companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.
Analyst Ratings
This is a summary of recent ratings for VICI Properties and SBA Communications, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| VICI Properties | 0 | 8 | 8 | 0 | 2.50 |
| SBA Communications | 0 | 10 | 8 | 0 | 2.44 |
VICI Properties currently has a consensus price target of $29.61, indicating a potential upside of 20.97%. SBA Communications has a consensus price target of $226.53, indicating a potential upside of 21.04%. Given SBA Communications’ higher probable upside, analysts plainly believe SBA Communications is more favorable than VICI Properties.
Dividends
VICI Properties pays an annual dividend of $1.84 per share and has a dividend yield of 7.5%. SBA Communications pays an annual dividend of $5.00 per share and has a dividend yield of 2.7%. VICI Properties pays out 84.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SBA Communications pays out 53.9% of its earnings in the form of a dividend. VICI Properties has increased its dividend for 4 consecutive years and SBA Communications has increased its dividend for 6 consecutive years.
Profitability
This table compares VICI Properties and SBA Communications’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| VICI Properties | 56.46% | 8.10% | 4.94% |
| SBA Communications | 34.51% | -20.67% | 8.56% |
Volatility and Risk
VICI Properties has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, SBA Communications has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.
Insider and Institutional Ownership
97.7% of VICI Properties shares are held by institutional investors. Comparatively, 97.3% of SBA Communications shares are held by institutional investors. 0.3% of VICI Properties shares are held by insiders. Comparatively, 9.5% of SBA Communications shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares VICI Properties and SBA Communications”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| VICI Properties | $4.01 billion | 6.73 | $2.78 billion | $2.18 | 11.23 |
| SBA Communications | $2.87 billion | 6.92 | $1.05 billion | $9.28 | 20.17 |
VICI Properties has higher revenue and earnings than SBA Communications. VICI Properties is trading at a lower price-to-earnings ratio than SBA Communications, indicating that it is currently the more affordable of the two stocks.
Summary
SBA Communications beats VICI Properties on 9 of the 16 factors compared between the two stocks.
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.
About SBA Communications
SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. With a portfolio of more than 39,000 communications sites throughout the Americas, Africa and in Asia, SBA is listed on NASDAQ under the symbol SBAC. Our organization is part of the S&P 500 and is one of the top Real Estate Investment Trusts (REITs) by market capitalization.
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