Saul Centers (NYSE:BFS) vs. VICI Properties (NYSE:VICI) Critical Survey


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

Dividends

VICI Properties pays an annual dividend of $1.32 per share and has a dividend yield of 5.2%. Saul Centers pays an annual dividend of $2.12 per share and has a dividend yield of 6.6%. VICI Properties pays out 89.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Saul Centers pays out 68.8% of its earnings in the form of a dividend. VICI Properties has raised its dividend for 3 consecutive years and Saul Centers has raised its dividend for 1 consecutive years. Saul Centers is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

Net Margins Return on Equity Return on Assets
VICI Properties 46.09% 4.80% 2.77%
Saul Centers 19.59% 17.17% 2.64%

Volatility and Risk

VICI Properties has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Saul Centers has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Institutional and Insider Ownership

45.9% of Saul Centers shares are held by institutional investors. 0.2% of VICI Properties shares are held by insiders. Comparatively, 50.1% of Saul Centers shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares VICI Properties and Saul Centers’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
VICI Properties $894.80 million 15.16 $545.96 million $1.48 17.07
Saul Centers $231.52 million 3.24 $51.72 million $3.08 10.40

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

Analyst Recommendations

This is a breakdown of recent ratings for VICI Properties and Saul Centers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VICI Properties 0 1 16 1 3.00
Saul Centers 0 3 0 0 2.00

VICI Properties presently has a consensus target price of $27.45, indicating a potential upside of 8.62%. Saul Centers has a consensus target price of $47.33, indicating a potential upside of 47.82%. Given Saul Centers’ higher possible upside, analysts clearly believe Saul Centers is more favorable than VICI Properties.

Summary

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

VICI Properties Company Profile

VICI Properties is an experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including the world-renowned Caesars Palace. VICI Properties' national, geographically diverse portfolio consists of 29 gaming facilities comprising over 48 million square feet and features approximately 19,200 hotel rooms and more than 200 restaurants, bars and nightclubs. Its properties are leased to industry leading gaming and hospitality operators, including Caesars Entertainment, Inc., Century Casinos Inc., Hard Rock International, JACK Entertainment and Penn National Gaming, Inc. VICI Properties also owns four championship golf courses and 34 acres of undeveloped land adjacent to the Las Vegas Strip. VICI Properties' strategy is to create the nation's highest quality and most productive experiential real estate portfolio.

Saul Centers Company Profile

Saul Centers, Inc. is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland, which currently operates and manages a real estate portfolio of 60 properties which includes (a) 50 community and neighborhood shopping centers and seven mixed-use properties with approximately 9.8 million square feet of leasable area and (b) three land and development properties. Approximately 85% of the Saul Centers' property operating income is generated by properties in the metropolitan Washington, DC/Baltimore area.

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