Critical Comparison: Safehold (NYSE:SAFE) vs. VICI Properties (NYSE:VICI)

Safehold (NYSE:SAFE) and VICI Properties (NYSE:VICI) are both real estate companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Insider and Institutional Ownership

70.4% of Safehold shares are owned by institutional investors. Comparatively, 97.7% of VICI Properties shares are owned by institutional investors. 3.8% of Safehold shares are owned by insiders. Comparatively, 0.3% of VICI Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Safehold pays an annual dividend of $0.71 per share and has a dividend yield of 4.6%. VICI Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.8%. Safehold pays out 43.8% of its earnings in the form of a dividend. VICI Properties pays out 69.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Safehold has increased its dividend for 1 consecutive years and 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.

Volatility & Risk

Safehold has a beta of 1.75, suggesting that its share price is 75% more 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Safehold	27.70%	4.76%	1.62%
VICI Properties	67.50%	9.66%	5.87%

Valuation & Earnings

This table compares Safehold and VICI Properties”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safehold	$385.55 million	2.82	$114.47 million	$1.62	9.47
VICI Properties	$4.10 billion	7.15	$2.78 billion	$2.58	10.31

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safehold	1	7	2	0	2.10
VICI Properties	0	7	6	0	2.46

Safehold currently has a consensus target price of $17.17, indicating a potential upside of 11.91%. VICI Properties has a consensus target price of $31.29, indicating a potential upside of 17.66%. Given VICI Properties’ stronger consensus rating and higher possible upside, analysts plainly believe VICI Properties is more favorable than Safehold.

Summary

VICI Properties beats Safehold on 14 of the 17 factors compared between the two stocks.

About Safehold

Safehold Inc. (NYSE: SAFE) is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. Having created the modern ground lease industry in 2017, Safehold continues to help owners of high quality multifamily, office, industrial, hospitality, student housing, life science and mixed-use properties generate higher returns with less risk. The Company, which is taxed as a real estate investment trust (REIT), seeks to deliver safe, growing income and long-term capital appreciation to its shareholders.

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.