VICI Properties (NYSE:VICI) & Prologis (NYSE:PLD) Critical Review

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

Profitability

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

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prologis	0	6	10	1	2.71
VICI Properties	0	2	7	0	2.78

Prologis presently has a consensus target price of $132.71, indicating a potential upside of 12.20%. VICI Properties has a consensus target price of $34.00, indicating a potential upside of 5.67%. Given Prologis’ higher probable upside, equities research analysts plainly believe Prologis is more favorable than VICI Properties.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prologis	$7.77 billion	14.10	$3.06 billion	$3.42	34.58
VICI Properties	$3.74 billion	8.96	$2.51 billion	$2.53	12.72

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.

Risk and Volatility

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

Dividends

Prologis pays an annual dividend of $3.84 per share and has a dividend yield of 3.2%. VICI Properties pays an annual dividend of $1.73 per share and has a dividend yield of 5.4%. 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. VICI Properties pays out 68.4% of its earnings in the form of a dividend. 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.

Institutional & Insider Ownership

93.5% of Prologis shares are owned by institutional investors. Comparatively, 97.7% of VICI Properties shares are owned by institutional investors. 0.5% of Prologis shares are owned by insiders. Comparatively, 0.3% of VICI Properties shares are owned by 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

Prologis beats VICI Properties on 11 of the 18 factors compared between the two stocks.

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.

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.