Financial Comparison: HG (OTCMKTS:STLY) versus VICI Properties (NYSE:VICI)

HG (OTCMKTS:STLY) and VICI Properties (NYSE:VICI) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and target prices for HG and VICI Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HG	0	0	0	0	0.00
VICI Properties	0	7	7	0	2.50

VICI Properties has a consensus price target of $32.86, indicating a potential upside of 20.03%. Given VICI Properties’ stronger consensus rating and higher probable upside, analysts plainly believe VICI Properties is more favorable than HG.

Valuation and Earnings

This table compares HG and VICI Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HG	$14.74 million	1.54	$1.53 million	$0.54	8.33
VICI Properties	$4.01 billion	7.30	$2.78 billion	$2.92	9.38

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HG	14.64%	5.56%	4.34%
VICI Properties	76.83%	11.05%	6.66%

Insider & Institutional Ownership

1.7% of HG shares are owned by institutional investors. Comparatively, 97.7% of VICI Properties shares are owned by institutional investors. 75.7% of HG shares are owned by company insiders. Comparatively, 0.3% of VICI Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

HG has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500. Comparatively, VICI Properties has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.

Summary

VICI Properties beats HG on 13 of the 14 factors compared between the two stocks.

About HG

HG Holdings, Inc. engages in the title insurance and real estate businesses in the United States. It operates through four segments: Title Insurance Services, Reinsurance, Management Services, and Real Estate. The company provides title insurance, closing and/or escrow, and similar or related services in connection with residential and commercial real estate transactions. It also owns and operates a portfolio of single-tenant properties leased for the occupancy by U.S. government tenant agencies and sub-agencies, such as the Federal Bureau of Investigation, the Department of Veterans affairs, the Drug Enforcement Administration, Immigration & Customs Enforcement, the Social Security Administration, and the Department of Transportation. In addition, the company provides excess-of-loss reinsurance coverage related to catastrophic weather risk in Texas; and management advisory services, such as formation, operational, and restructuring services. The company was formerly known as Stanley Furniture Company, Inc. and changed its name to HG Holdings, Inc. in March 2018. HG Holdings, Inc. was incorporated in 1984 and is headquartered in Charlotte, North Carolina.

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.