Realty Income vs VICI Properties

Realty Income and VICI Properties are two well-established real estate investment trusts (REITs) that offer investors the opportunity to profit from owning prime commercial properties. Realty Income focuses on acquiring and managing a diversified portfolio of retail and industrial properties, while VICI Properties specializes in gaming, hospitality, and entertainment real estate assets. Both companies have a strong track record of generating steady cash flows and paying out consistent dividends, making them attractive investments for income-seeking investors. However, each REIT has its own unique strengths and weaknesses that should be considered before making an investment decision.

Realty Income or VICI Properties?

When comparing Realty Income and VICI Properties, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Realty Income and VICI Properties.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Realty Income has a dividend yield of 4.91%, while VICI Properties has a dividend yield of 5.11%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Realty Income reports a 5-year dividend growth of 3.00% year and a payout ratio of 286.57%. On the other hand, VICI Properties reports a 5-year dividend growth of 10.05% year and a payout ratio of 63.46%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Realty Income P/E ratio at 65.37 and VICI Properties's P/E ratio at 12.98. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Realty Income P/B ratio is 1.42 while VICI Properties's P/B ratio is 1.33.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Realty Income has seen a 5-year revenue growth of 0.28%, while VICI Properties's is 0.46%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Realty Income's ROE at 2.37% and VICI Properties's ROE at 10.48%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $62.37 for Realty Income and $32.75 for VICI Properties. Over the past year, Realty Income's prices ranged from $45.04 to $63.74, with a yearly change of 41.52%. VICI Properties's prices fluctuated between $26.62 and $34.29, with a yearly change of 28.79%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.