VICI Properties vs Realty Income

VICI Properties and Realty Income are two prominent real estate investment trusts (REITs) in the market. VICI Properties primarily focuses on gaming, hospitality, and entertainment properties, while Realty Income specializes in retail and commercial properties. Both companies offer investors the opportunity to benefit from steady rental income and potential capital appreciation. VICI Properties boasts a strong portfolio of assets in key gaming markets, while Realty Income has a history of consistent dividend payouts. Investors should consider their investment goals and risk tolerance when choosing between these two stocks.

VICI Properties or Realty Income?

When comparing VICI Properties and Realty Income, 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 VICI Properties and Realty Income.

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. VICI Properties has a dividend yield of 5.11%, while Realty Income has a dividend yield of 4.91%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. VICI Properties reports a 5-year dividend growth of 10.05% year and a payout ratio of 63.46%. On the other hand, Realty Income reports a 5-year dividend growth of 3.00% year and a payout ratio of 286.57%.

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 VICI Properties P/E ratio at 12.98 and Realty Income's P/E ratio at 65.37. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. VICI Properties P/B ratio is 1.33 while Realty Income's P/B ratio is 1.42.

Growth Investors:

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

Retail Investors:

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