Analyzing VICI Properties (NYSE:VICI) & Innovative Industrial Properties (NYSE:IIPR)

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

Dividends

Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 16.4%. VICI Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.0%. Innovative Industrial Properties pays out 180.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. VICI Properties pays out 68.7% of its earnings in the form of a dividend. Innovative Industrial Properties has raised its dividend for 4 consecutive years and VICI Properties has raised its dividend for 4 consecutive years.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innovative Industrial Properties	$308.52 million	4.20	$161.66 million	$4.22	10.96
VICI Properties	$3.85 billion	8.39	$2.68 billion	$2.62	11.54

VICI Properties has higher revenue and earnings than Innovative Industrial Properties. Innovative Industrial Properties 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 summary of recent recommendations for Innovative Industrial Properties and VICI Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innovative Industrial Properties	3	2	0	0	1.40
VICI Properties	0	5	9	0	2.64

Innovative Industrial Properties currently has a consensus target price of $52.75, suggesting a potential upside of 14.00%. VICI Properties has a consensus target price of $33.85, suggesting a potential upside of 11.98%. Given Innovative Industrial Properties’ higher probable upside, research analysts plainly believe Innovative Industrial Properties is more favorable than VICI Properties.

Volatility & Risk

Innovative Industrial Properties has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, VICI Properties has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Institutional and Insider Ownership

70.6% of Innovative Industrial Properties shares are held by institutional investors. Comparatively, 97.7% of VICI Properties shares are held by institutional investors. 2.0% of Innovative Industrial Properties shares are held by company insiders. Comparatively, 0.3% of VICI Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Innovative Industrial Properties	45.80%	6.77%	5.40%
VICI Properties	70.18%	10.17%	6.07%

Summary

VICI Properties beats Innovative Industrial Properties on 11 of the 16 factors compared between the two stocks.

About Innovative Industrial Properties

Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017.

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.