Critical Survey: Prologis (NYSE:PLD) versus VICI Properties (NYSE:VICI)

VICI Properties (NYSE:VICI) and Prologis (NYSE:PLD) are both large-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
VICI Properties	70.38%	10.32%	6.00%
Prologis	36.37%	4.88%	3.04%

Risk & Volatility

VICI Properties has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Prologis has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VICI Properties	$3.74 billion	9.20	$2.51 billion	$2.53	13.06
Prologis	$7.77 billion	14.63	$3.06 billion	$3.42	35.89

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

Insider & Institutional Ownership

97.7% of VICI Properties shares are owned by institutional investors. Comparatively, 93.5% of Prologis shares are owned by institutional investors. 0.3% of VICI Properties shares are owned by company insiders. Comparatively, 0.5% of Prologis shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

VICI Properties pays an annual dividend of $1.73 per share and has a dividend yield of 5.2%. Prologis pays an annual dividend of $3.84 per share and has a dividend yield of 3.1%. VICI Properties pays out 68.4% of its earnings in the form of a dividend. Prologis pays out 112.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Prologis has increased its dividend for 11 consecutive years. VICI Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current recommendations for VICI Properties and Prologis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VICI Properties	0	2	6	0	2.75
Prologis	0	6	10	1	2.71

VICI Properties currently has a consensus target price of $34.00, indicating a potential upside of 2.91%. Prologis has a consensus target price of $132.71, indicating a potential upside of 8.12%. Given Prologis’ higher probable upside, analysts plainly believe Prologis is more favorable than VICI Properties.

Summary

Prologis beats VICI Properties on 11 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 Prologis

Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. At March 31, 2024, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 1.2 billion square feet (115 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 6,700 customers principally across two major categories: business-to-business and retail/online fulfillment.