Contrasting Equinix (NASDAQ:EQIX) & VICI Properties (NYSE:VICI)

VICI Properties (NYSE:VICI) and Equinix (NASDAQ:EQIX) are both large-cap real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Risk & Volatility

VICI Properties has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, Equinix has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VICI Properties	$4.01 billion	6.81	$2.78 billion	$2.18	11.37
Equinix	$9.22 billion	11.48	$1.35 billion	$16.65	64.43

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

Dividends

VICI Properties pays an annual dividend of $1.84 per share and has a dividend yield of 7.4%. Equinix pays an annual dividend of $20.64 per share and has a dividend yield of 1.9%. VICI Properties pays out 84.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equinix pays out 124.0% 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 increased its dividend for 4 consecutive years and Equinix has increased its dividend for 10 consecutive years. VICI Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

97.7% of VICI Properties shares are held by institutional investors. Comparatively, 94.9% of Equinix shares are held by institutional investors. 0.3% of VICI Properties shares are held by company insiders. Comparatively, 0.3% of Equinix shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
VICI Properties	56.46%	8.10%	4.94%
Equinix	16.38%	11.49%	3.96%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for VICI Properties and Equinix, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VICI Properties	0	8	8	0	2.50
Equinix	0	4	26	2	2.94

VICI Properties currently has a consensus target price of $29.46, indicating a potential upside of 18.85%. Equinix has a consensus target price of $1,234.13, indicating a potential upside of 15.04%. Given VICI Properties’ higher probable upside, equities research analysts plainly believe VICI Properties is more favorable than Equinix.

Summary

Equinix beats VICI Properties on 10 of the 18 factors compared between the two stocks.

About VICI Properties

VICI Properties Inc. is a real estate investment trust that owns experiential properties, with a portfolio focused primarily on casinos and other gaming-related destinations. Its properties include gaming facilities, hotels, restaurants and entertainment venues. The company leases its properties to operators under long-term agreements, generally structured as triple-net leases, in which tenants are responsible for expenses such as property taxes, insurance and maintenance. VICI also owns golf courses and other leisure-related properties.

About Equinix

Equinix, Inc. is a global digital infrastructure company that operates data centers where businesses can house their computing and networking equipment. Its colocation services support organizations seeking secure, reliable facilities for their IT systems. The company also provides interconnection services that enable customers to connect with cloud providers, networks, business partners and one another. Its Equinix Fabric platform offers software-defined connectivity, while its xScale facilities are designed to serve large-scale cloud and technology companies.