Analyzing UDR (NYSE:UDR) and VICI Properties (NYSE:VICI)

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

Risk & Volatility

UDR has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, VICI Properties has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UDR	7.68%	3.57%	1.19%
VICI Properties	73.90%	10.80%	6.33%

Insider & Institutional Ownership

97.8% of UDR shares are held by institutional investors. Comparatively, 97.7% of VICI Properties shares are held by institutional investors. 3.7% of UDR shares are held by insiders. Comparatively, 0.3% of VICI Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares UDR and VICI Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UDR	$1.63 billion	9.14	$444.35 million	$0.37	121.87
VICI Properties	$3.81 billion	8.93	$2.51 billion	$2.70	11.94

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for UDR and VICI Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UDR	1	8	8	0	2.41
VICI Properties	0	2	7	0	2.78

UDR currently has a consensus target price of $45.18, indicating a potential upside of 0.19%. VICI Properties has a consensus target price of $34.22, indicating a potential upside of 6.18%. Given VICI Properties’ stronger consensus rating and higher probable upside, analysts clearly believe VICI Properties is more favorable than UDR.

Dividends

UDR pays an annual dividend of $1.70 per share and has a dividend yield of 3.8%. VICI Properties pays an annual dividend of $1.73 per share and has a dividend yield of 5.4%. UDR pays out 459.5% 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 64.1% of its earnings in the form of a dividend. UDR has raised its dividend for 14 consecutive years. VICI Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

VICI Properties beats UDR on 11 of the 17 factors compared between the two stocks.

About UDR

UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. As of December 31, 2023, UDR owned or had an ownership position in 60,336 apartment homes including 359 homes under development. For over 51 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.

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.