Financial Review: VICI Properties (NYSE:VICI) versus Gladstone Commercial (NASDAQ:GOOD)

Gladstone Commercial (NASDAQ:GOOD) and VICI Properties (NYSE:VICI) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.

Risk and Volatility

Gladstone Commercial has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, VICI Properties has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gladstone Commercial	$155.25 million	3.45	$24.00 million	$0.18	61.50
VICI Properties	$3.85 billion	8.05	$2.68 billion	$2.62	11.06

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gladstone Commercial	18.67%	16.37%	2.52%
VICI Properties	70.18%	10.17%	6.07%

Dividends

Gladstone Commercial pays an annual dividend of $1.20 per share and has a dividend yield of 10.8%. VICI Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.2%. Gladstone Commercial pays out 666.7% 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. VICI Properties has increased its dividend for 4 consecutive years.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Gladstone Commercial and VICI Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gladstone Commercial	1	2	0	0	1.67
VICI Properties	0	5	12	0	2.71

Gladstone Commercial currently has a consensus target price of $12.00, indicating a potential upside of 8.40%. VICI Properties has a consensus target price of $35.29, indicating a potential upside of 21.72%. Given VICI Properties’ stronger consensus rating and higher possible upside, analysts clearly believe VICI Properties is more favorable than Gladstone Commercial.

Institutional and Insider Ownership

45.5% of Gladstone Commercial shares are owned by institutional investors. Comparatively, 97.7% of VICI Properties shares are owned by institutional investors. 1.4% of Gladstone Commercial 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

VICI Properties beats Gladstone Commercial on 12 of the 17 factors compared between the two stocks.

About Gladstone Commercial

Gladstone Commercial Corporation is a real estate investment trust focused on acquiring, owning, and operating net leased industrial and office properties across the United States. Including payments through January 2024, Gladstone Commercial has paid 229 consecutive monthly cash distributions on its common stock. Prior to paying distributions on a monthly basis, Gladstone Commercial paid five consecutive quarterly cash distributions. Gladstone Commercial has never skipped or deferred a distribution since its inception in 2003.

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.