Head-To-Head Review: Equinix (NASDAQ:EQIX) and VICI Properties (NYSE:VICI)

VICI Properties (NYSE:VICI) and Equinix (NASDAQ:EQIX) are both large-cap real estate companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Institutional & Insider Ownership

97.7% of VICI Properties shares are owned by institutional investors. Comparatively, 94.9% of Equinix shares are owned by institutional investors. 0.3% of VICI Properties shares are owned by insiders. Comparatively, 0.3% of Equinix shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VICI Properties	$4.01 billion	6.92	$2.78 billion	$2.18	11.55
Equinix	$9.22 billion	11.29	$1.35 billion	$16.65	63.33

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

Dividends

VICI Properties pays an annual dividend of $1.84 per share and has a dividend yield of 7.3%. Equinix pays an annual dividend of $20.64 per share and has a dividend yield of 2.0%. 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. Equinix pays out 124.0% 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 raised its dividend for 4 consecutive years and Equinix has raised its dividend for 10 consecutive years. VICI Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for VICI Properties and Equinix, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VICI Properties	0	8	8	0	2.50
Equinix	0	4	26	2	2.94

VICI Properties presently has a consensus target price of $29.46, indicating a potential upside of 16.99%. Equinix has a consensus target price of $1,234.13, indicating a potential upside of 17.03%. Given Equinix’s stronger consensus rating and higher possible upside, analysts clearly believe Equinix is more favorable than VICI Properties.

Profitability

This table compares VICI Properties and Equinix’s 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%
Equinix	16.38%	11.49%	3.96%

Volatility & Risk

VICI Properties has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Equinix has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Summary

Equinix beats VICI Properties on 11 of the 18 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 Equinix

Equinix (Nasdaq: EQIX) is the world's digital infrastructure company . Digital leaders harness Equinix's trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.