Critical Analysis: VICI Properties (NYSE:VICI) versus Crown Castle (NYSE:CCI)

Crown Castle (NYSE:CCI) and VICI Properties (NYSE:VICI) are both large-cap real estate companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.

Dividends

Crown Castle pays an annual dividend of $4.25 per share and has a dividend yield of 5.4%. VICI Properties pays an annual dividend of $1.84 per share and has a dividend yield of 8.0%. Crown Castle pays out 215.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. VICI Properties pays out 71.3% of its earnings in the form of a dividend. VICI Properties has raised its dividend for 4 consecutive years. VICI Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Crown Castle and VICI Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Crown Castle	$4.16 billion	8.06	$444.00 million	$1.97	40.02
VICI Properties	$4.01 billion	6.36	$2.78 billion	$2.58	8.97

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

Profitability

This table compares Crown Castle and VICI Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Crown Castle	20.71%	-51.60%	3.70%
VICI Properties	67.50%	9.66%	5.87%

Risk & Volatility

Crown Castle has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, VICI Properties has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Crown Castle and VICI Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Crown Castle	2	9	8	2	2.48
VICI Properties	0	8	8	0	2.50

Crown Castle presently has a consensus target price of $93.97, indicating a potential upside of 19.18%. VICI Properties has a consensus target price of $29.81, indicating a potential upside of 28.88%. Given VICI Properties’ stronger consensus rating and higher probable upside, analysts plainly believe VICI Properties is more favorable than Crown Castle.

Institutional & Insider Ownership

90.8% of Crown Castle shares are held by institutional investors. Comparatively, 97.7% of VICI Properties shares are held by institutional investors. 0.1% of Crown Castle shares are held by company insiders. Comparatively, 0.3% of VICI Properties shares are held by company 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 Crown Castle on 12 of the 17 factors compared between the two stocks.

About Crown Castle

Crown Castle owns, operates and leases more than 40,000 cell towers and approximately 90,000 route miles of fiber supporting small cells and fiber solutions across every major U.S. market. This nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology and wireless service – bringing information, ideas and innovations to the people and businesses that need them.

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.