Financial Analysis: Global Self Storage (NASDAQ:SELF) vs. VICI Properties (NYSE:VICI)

VICI Properties (NYSE:VICI) and Global Self Storage (NASDAQ:SELF) are both real estate companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Profitability

This table compares VICI Properties and Global Self Storage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VICI Properties	67.50%	9.66%	5.87%
Global Self Storage	16.64%	4.57%	3.32%

Analyst Ratings

This is a summary of recent ratings for VICI Properties and Global Self Storage, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VICI Properties	0	8	7	0	2.47
Global Self Storage	0	1	0	0	2.00

VICI Properties currently has a consensus target price of $30.00, indicating a potential upside of 31.16%. Given VICI Properties’ stronger consensus rating and higher probable upside, research analysts plainly believe VICI Properties is more favorable than Global Self Storage.

Dividends

VICI Properties pays an annual dividend of $1.84 per share and has a dividend yield of 8.0%. Global Self Storage pays an annual dividend of $0.29 per share and has a dividend yield of 5.9%. VICI Properties pays out 71.3% of its earnings in the form of a dividend. Global Self Storage pays out 161.1% 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 raised its dividend for 4 consecutive years. VICI Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares VICI Properties and Global Self Storage”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VICI Properties	$4.01 billion	6.29	$2.78 billion	$2.58	8.87
Global Self Storage	$12.70 million	4.41	$2.04 million	$0.18	27.22

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

Insider & Institutional Ownership

97.7% of VICI Properties shares are held by institutional investors. Comparatively, 28.9% of Global Self Storage shares are held by institutional investors. 0.3% of VICI Properties shares are held by company insiders. Comparatively, 10.7% of Global Self Storage shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

VICI Properties has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Global Self Storage has a beta of -0.02, indicating that its share price is 102% less volatile than the S&P 500.

Summary

VICI Properties beats Global Self Storage on 15 of the 17 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 Global Self Storage

Global Self Storage is a self-administered and self-managed REIT that owns, operates, manages, acquires, and redevelops self-storage properties. The company's self-storage properties are designed to offer affordable, easily accessible and secure storage space for residential and commercial customers. Through its wholly owned subsidiaries, the company owns and/or manages 13 self-storage properties in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania, South Carolina, and Oklahoma.