Critical Contrast: VICI Properties (NYSE:VICI) and Covivio (OTCMKTS:GSEFF)

VICI Properties (NYSE:VICI) and Covivio (OTCMKTS:GSEFF) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Insider & Institutional Ownership

97.7% of VICI Properties shares are owned by institutional investors. Comparatively, 15.2% of Covivio shares are owned by institutional investors. 0.3% of VICI 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.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VICI Properties	$3.74 billion	8.80	$2.51 billion	$2.53	12.49
Covivio	N/A	N/A	N/A	$2.95	17.59

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

Profitability

This table compares VICI Properties and Covivio’s 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%
Covivio	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and target prices for VICI Properties and Covivio, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VICI Properties	0	2	7	0	2.78
Covivio	0	0	0	0	N/A

VICI Properties presently has a consensus price target of $33.44, suggesting a potential upside of 5.87%. Given VICI Properties’ higher probable upside, research analysts clearly believe VICI Properties is more favorable than Covivio.

Dividends

VICI Properties pays an annual dividend of $1.66 per share and has a dividend yield of 5.3%. Covivio pays an annual dividend of $2.93 per share and has a dividend yield of 5.6%. VICI Properties pays out 65.6% of its earnings in the form of a dividend. Covivio pays out 99.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

VICI Properties beats Covivio on 9 of the 12 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 Covivio

Thanks to its partnering history, its real estate expertise and its European culture, Covivio is inventing today's user experience and designing tomorrow's city. A preferred real estate player at the European level, Covivio is close to its end users, capturing their aspirations, combining work, travel, living, and co-inventing vibrant spaces. A benchmark in the European real estate market with 23.1 bn in assets, Covivio offers support to companies, hotel brands and territories in their pursuit for attractiveness, transformation and responsible performance. Build sustainable relationships and well-being, is the Covivio's Purpose who expresses its role as a responsible real estate operator to all its stakeholders: customers, shareholders and financial partners, internal teams, local authorities but also to future generations and the planet. Furthermore, its living, dynamic approach opens up exciting project and career prospects for its teams. Covivio's shares are listed in the Euronext Paris A compartment (FR0000064578 – COV), are admitted to trading on the SRD, and are included in the composition of the MSCI, SBF 120, Euronext IEIF SIIC France and CAC Mid100 indices, in the EPRA and GPR 250 benchmark European real estate indices, and in the ESG FTSE4 Good, CAC SBT 1.5°C, DJSI World & Europe, Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20), Euronext CDP Environment France EW, ISS ESG, Ethibel and Gaïa ethical indices and also holds the following awards and ratings: CDP (A), GRESB (90/100, 5-Star, 100% public disclosure), Vigeo-Eiris (A1+), ISS-ESG (B-) and MSCI (AAA).