Analyzing Terreno Realty (NYSE:TRNO) and VICI Properties (NYSE:VICI)

VICI Properties (NYSE:VICI) and Terreno Realty (NYSE:TRNO) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Valuation and Earnings

This table compares VICI Properties and Terreno Realty”s 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	7.61	$2.78 billion	$2.92	9.76
Terreno Realty	$476.38 million	14.79	$402.99 million	$3.90	17.00

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for VICI Properties and Terreno Realty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VICI Properties	0	6	7	0	2.54
Terreno Realty	1	2	8	1	2.75

VICI Properties currently has a consensus target price of $33.23, suggesting a potential upside of 16.57%. Terreno Realty has a consensus target price of $69.36, suggesting a potential upside of 4.60%. Given VICI Properties’ higher possible upside, equities analysts clearly believe VICI Properties is more favorable than Terreno Realty.

Insider & Institutional Ownership

97.7% of VICI Properties shares are owned by institutional investors. 0.3% of VICI Properties shares are owned by company insiders. Comparatively, 1.9% of Terreno Realty shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
VICI Properties	76.83%	11.05%	6.66%
Terreno Realty	84.51%	10.08%	7.82%

Dividends

VICI Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.3%. Terreno Realty pays an annual dividend of $2.08 per share and has a dividend yield of 3.1%. VICI Properties pays out 61.6% of its earnings in the form of a dividend. Terreno Realty pays out 53.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. VICI Properties has raised its dividend for 4 consecutive years and Terreno Realty has raised its dividend for 5 consecutive years.

Volatility & Risk

VICI Properties has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Terreno Realty has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Summary

Terreno Realty beats VICI Properties on 12 of the 18 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 Terreno Realty

Terreno Realty Corporation (Terreno, and together with its subsidiaries, the Company) acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C. All square feet, acres, occupancy and number of properties disclosed in these notes to the consolidated financial statements are unaudited. As of December 31, 2023, the Company owned 259 buildings aggregating approximately 16.0 million square feet, 45 improved land parcels consisting of approximately 152.4 acres, seven properties under development or redevelopment and approximately 62.7 acres of land entitled for future development. The Company is an internally managed Maryland corporation and elected to be taxed as a real estate investment trust (REIT) under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), commencing with its taxable year ended December 31, 2010.