Reviewing VICI Properties (NYSE:VICI) and Claros Mortgage Trust (NYSE:CMTG)

VICI Properties (NYSE:VICI) and Claros Mortgage Trust (NYSE:CMTG) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares VICI Properties and Claros Mortgage Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VICI Properties	70.18%	10.17%	6.07%
Claros Mortgage Trust	-189.56%	-5.11%	-1.49%

Institutional & Insider Ownership

97.7% of VICI Properties shares are owned by institutional investors. Comparatively, 89.5% of Claros Mortgage Trust shares are owned by institutional investors. 0.3% of VICI Properties shares are owned by company insiders. Comparatively, 1.8% of Claros Mortgage Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for VICI Properties and Claros Mortgage Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VICI Properties	0	3	13	0	2.81
Claros Mortgage Trust	3	0	1	0	1.50

VICI Properties presently has a consensus price target of $35.69, indicating a potential upside of 19.55%. Claros Mortgage Trust has a consensus price target of $3.33, indicating a potential downside of 4.08%. Given VICI Properties’ stronger consensus rating and higher probable upside, analysts clearly believe VICI Properties is more favorable than Claros Mortgage Trust.

Dividends

VICI Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.0%. Claros Mortgage Trust pays an annual dividend of $0.40 per share and has a dividend yield of 11.5%. VICI Properties pays out 68.7% of its earnings in the form of a dividend. Claros Mortgage Trust pays out -13.4% 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. VICI Properties has raised its dividend for 4 consecutive years. Claros Mortgage Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares VICI Properties and Claros Mortgage Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VICI Properties	$3.97 billion	8.04	$2.68 billion	$2.62	11.40
Claros Mortgage Trust	$25.81 million	18.83	-$221.26 million	($2.98)	-1.17

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

Volatility and Risk

VICI Properties has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Claros Mortgage Trust has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Summary

VICI Properties beats Claros Mortgage Trust on 12 of the 17 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 Claros Mortgage Trust

Claros Mortgage Trust, Inc. operates as a real estate investment trust. It focuses on originating senior and subordinate loans on transitional commercial real estate assets in the United States. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was incorporated in 2015 and is headquartered in New York, New York.