VICI Properties (NYSE:VICI) vs. Equity Commonwealth (NYSE:EQC) Critical Review

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

Risk and Volatility

VICI Properties has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, Equity Commonwealth has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Institutional & Insider Ownership

97.7% of VICI Properties shares are owned by institutional investors. Comparatively, 96.0% of Equity Commonwealth shares are owned by institutional investors. 0.3% of VICI Properties shares are owned by company insiders. Comparatively, 2.1% of Equity Commonwealth shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for VICI Properties and Equity Commonwealth, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VICI Properties	0	3	8	0	2.73
Equity Commonwealth	0	0	0	0	0.00

VICI Properties currently has a consensus target price of $35.18, suggesting a potential upside of 8.80%. Given VICI Properties’ stronger consensus rating and higher probable upside, equities analysts clearly believe VICI Properties is more favorable than Equity Commonwealth.

Earnings and Valuation

This table compares VICI Properties and Equity Commonwealth”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VICI Properties	$3.85 billion	8.88	$2.68 billion	$2.50	12.93
Equity Commonwealth	$58.43 million	2.90	$91.16 million	$0.39	4.05

VICI Properties has higher revenue and earnings than Equity Commonwealth. Equity Commonwealth 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 VICI Properties and Equity Commonwealth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VICI Properties	67.81%	9.88%	5.84%
Equity Commonwealth	82.00%	2.09%	1.96%

Summary

VICI Properties beats Equity Commonwealth on 12 of the 14 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 Equity Commonwealth

Equity Commonwealth (NYSE: EQC) is a Chicago based, internally managed and self-advised real estate investment trust (REIT) with commercial office properties in the United States. EQC's portfolio is comprised of four properties totaling 1.5 million square feet.