Analyzing Four Corners Property Trust (NYSE:FCPT) & VICI Properties (NYSE:VICI)

VICI Properties (NYSE:VICI) and Four Corners Property Trust (NYSE:FCPT) are both real estate companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, earnings, dividends, institutional ownership, profitability, analyst recommendations and risk.

Institutional and Insider Ownership

97.7% of VICI Properties shares are held by institutional investors. Comparatively, 98.7% of Four Corners Property Trust shares are held by institutional investors. 0.3% of VICI Properties shares are held by company insiders. Comparatively, 1.2% of Four Corners Property Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares VICI Properties and Four Corners Property Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VICI Properties	67.50%	9.66%	5.87%
Four Corners Property Trust	38.70%	7.35%	4.05%

Risk & Volatility

VICI Properties has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Four Corners Property Trust has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.

Earnings & Valuation

This table compares VICI Properties and Four Corners Property Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VICI Properties	$4.01 billion	7.30	$2.78 billion	$2.58	10.29
Four Corners Property Trust	$294.13 million	9.43	$112.36 million	$1.11	22.76

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for VICI Properties and Four Corners Property Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VICI Properties	0	7	6	0	2.46
Four Corners Property Trust	0	5	5	0	2.50

VICI Properties presently has a consensus price target of $31.29, indicating a potential upside of 17.84%. Four Corners Property Trust has a consensus price target of $27.78, indicating a potential upside of 9.97%. Given VICI Properties’ higher possible upside, analysts plainly believe VICI Properties is more favorable than Four Corners Property Trust.

Dividends

VICI Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.8%. Four Corners Property Trust pays an annual dividend of $1.47 per share and has a dividend yield of 5.8%. VICI Properties pays out 69.8% of its earnings in the form of a dividend. Four Corners Property Trust pays out 132.4% 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 has raised its dividend for 4 consecutive years and Four Corners Property Trust has raised its dividend for 5 consecutive years. VICI Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

VICI Properties beats Four Corners Property Trust on 10 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 Four Corners Property Trust

Four Corners Property Trust, Inc. engages in the owning, acquisition, and leasing of properties for use in the restaurant and food-service related industries. It operates through the Real Estate Operations and Restaurant Operations segments. The Real Estate Operations segment consists of rental revenues generated by leasing restaurant properties. The Restaurant Operations segment includes the Kerrow Restaurant operating business. The company was founded on July 2, 2015 and is headquartered in Mill Valley, CA.