Analyzing Public Storage (NYSE:PSA) & VICI Properties (NYSE:VICI)

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

Profitability

This table compares VICI Properties and Public Storage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VICI Properties	67.50%	9.66%	5.87%
Public Storage	41.80%	40.98%	10.19%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VICI Properties	0	8	8	0	2.50
Public Storage	0	14	7	0	2.33

VICI Properties presently has a consensus target price of $29.81, indicating a potential upside of 27.59%. Public Storage has a consensus target price of $323.42, indicating a potential upside of 7.16%. Given VICI Properties’ stronger consensus rating and higher possible upside, equities research analysts plainly believe VICI Properties is more favorable than Public Storage.

Volatility & Risk

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VICI Properties	$4.10 billion	6.28	$2.78 billion	$2.58	9.06
Public Storage	$4.82 billion	10.99	$1.78 billion	$10.48	28.80

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

Insider and Institutional Ownership

97.7% of VICI Properties shares are held by institutional investors. Comparatively, 78.8% of Public Storage shares are held by institutional investors. 0.3% of VICI Properties shares are held by insiders. Comparatively, 11.1% of Public Storage shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

VICI Properties pays an annual dividend of $1.84 per share and has a dividend yield of 7.9%. Public Storage pays an annual dividend of $12.00 per share and has a dividend yield of 4.0%. VICI Properties pays out 71.3% of its earnings in the form of a dividend. Public Storage pays out 114.5% 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 has increased 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.

Summary

VICI Properties beats Public Storage on 9 of the 17 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 Public Storage

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At December 31, 2023, we had: (i) interests in 3,044 self-storage facilities located in 40 states with approximately 218 million net rentable square feet in the United States and (ii) a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels: SHUR), which owned 275 self-storage facilities located in seven Western European nations with approximately 15 million net rentable square feet operated under the Shurgard brand. Our headquarters are located in Glendale, California.