Head-To-Head Analysis: Gladstone Commercial (NASDAQ:GOOD) & VICI Properties (NYSE:VICI)

by · The Cerbat Gem

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

Analyst Ratings

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

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
VICI Properties051202.71
Gladstone Commercial12001.67

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

Dividends

VICI Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.2%. Gladstone Commercial pays an annual dividend of $1.20 per share and has a dividend yield of 10.8%. VICI Properties pays out 68.7% of its earnings in the form of a dividend. 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 has increased its dividend for 4 consecutive years.

Valuation & Earnings

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

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
VICI Properties$3.85 billion8.05$2.68 billion$2.6211.06
Gladstone Commercial$155.25 million3.45$24.00 million$0.1861.50

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.

Volatility and Risk

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

Profitability

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

Net MarginsReturn on EquityReturn on Assets
VICI Properties70.18%10.17%6.07%
Gladstone Commercial18.67%16.37%2.52%

Insider and Institutional Ownership

97.7% of VICI Properties shares are held by institutional investors. Comparatively, 45.5% of Gladstone Commercial shares are held by institutional investors. 0.3% of VICI Properties shares are held by company insiders. Comparatively, 1.4% of Gladstone Commercial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock 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 VICI Properties

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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 Gladstone Commercial

(Get Free Report)

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.