Analyzing Millrose Properties (NYSE:MRP) & VICI Properties (NYSE:VICI)

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

Analyst Ratings

This is a breakdown of current ratings and price targets for VICI Properties and Millrose Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VICI Properties	0	8	7	0	2.47
Millrose Properties	0	3	0	1	2.50

VICI Properties presently has a consensus target price of $30.00, indicating a potential upside of 30.18%. Millrose Properties has a consensus target price of $36.50, indicating a potential upside of 62.11%. Given Millrose Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Millrose Properties is more favorable than VICI Properties.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VICI Properties	$4.10 billion	6.19	$2.78 billion	$2.58	8.93
Millrose Properties	$600.46 million	5.78	$379.86 million	$2.87	7.84

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

Institutional and Insider Ownership

97.7% of VICI Properties shares are owned by institutional investors. 0.3% of VICI Properties shares are owned by insiders. Comparatively, 0.2% of Millrose Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

VICI Properties pays an annual dividend of $1.84 per share and has a dividend yield of 8.0%. Millrose Properties pays an annual dividend of $3.16 per share and has a dividend yield of 14.0%. VICI Properties pays out 71.3% of its earnings in the form of a dividend. Millrose Properties pays out 110.1% 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.

Profitability

This table compares VICI Properties and Millrose Properties’ 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%
Millrose Properties	62.60%	8.13%	5.07%

Risk & Volatility

VICI Properties has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Millrose Properties has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500.

Summary

VICI Properties beats Millrose Properties on 13 of the 18 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 Millrose Properties

Millrose Properties, Inc. is a real estate investment and management company that focuses on acquiring, developing, and managing high-quality commercial properties. They are headquartered in Purchase, New York.