Contrasting VICI Properties (NYSE:VICI) & SBA Communications (NASDAQ:SBAC)

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

Valuation and Earnings

This table compares SBA Communications and VICI Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SBA Communications	$2.82 billion	7.14	$1.05 billion	$9.27	20.43
VICI Properties	$4.01 billion	6.82	$2.78 billion	$2.18	11.38

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.

Profitability

This table compares SBA Communications and VICI Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SBA Communications	34.54%	-20.76%	8.44%
VICI Properties	56.46%	8.10%	4.94%

Volatility and Risk

SBA Communications has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, VICI Properties has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Dividends

SBA Communications pays an annual dividend of $5.00 per share and has a dividend yield of 2.6%. VICI Properties pays an annual dividend of $1.84 per share and has a dividend yield of 7.4%. SBA Communications pays out 53.9% of its earnings in the form of a dividend. 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 has raised its dividend for 6 consecutive years and VICI Properties has raised its dividend for 4 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for SBA Communications and VICI Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SBA Communications	0	9	9	0	2.50
VICI Properties	0	8	8	0	2.50

SBA Communications presently has a consensus target price of $224.64, suggesting a potential upside of 18.60%. VICI Properties has a consensus target price of $29.46, suggesting a potential upside of 18.78%. Given VICI Properties’ higher probable upside, analysts plainly believe VICI Properties is more favorable than SBA Communications.

Insider & Institutional Ownership

97.3% of SBA Communications shares are owned by institutional investors. Comparatively, 97.7% of VICI Properties shares are owned by institutional investors. 9.5% of SBA Communications shares are owned by company insiders. Comparatively, 0.3% of VICI Properties shares are owned by company 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.

Summary

SBA Communications beats VICI Properties on 9 of the 16 factors compared between the two stocks.

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.

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.