Head to Head Survey: UDR (NYSE:UDR) and VICI Properties (NYSE:VICI)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
VICI Properties	73.90%	10.80%	6.33%
UDR	7.68%	3.57%	1.19%

Analyst Recommendations

This is a summary of current ratings and target prices for VICI Properties and UDR, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VICI Properties	0	2	7	0	2.78
UDR	1	8	8	0	2.41

VICI Properties currently has a consensus target price of $34.22, suggesting a potential upside of 5.72%. UDR has a consensus target price of $45.18, suggesting a potential downside of 1.66%. Given VICI Properties’ stronger consensus rating and higher probable upside, research analysts plainly believe VICI Properties is more favorable than UDR.

Institutional and Insider Ownership

97.7% of VICI Properties shares are held by institutional investors. Comparatively, 97.8% of UDR shares are held by institutional investors. 0.3% of VICI Properties shares are held by company insiders. Comparatively, 3.7% of UDR shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

VICI Properties has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, UDR has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VICI Properties	$3.61 billion	9.45	$2.51 billion	$2.70	11.99
UDR	$1.63 billion	9.31	$444.35 million	$0.37	124.17

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

Dividends

VICI Properties pays an annual dividend of $1.73 per share and has a dividend yield of 5.3%. UDR pays an annual dividend of $1.70 per share and has a dividend yield of 3.7%. VICI Properties pays out 64.1% of its earnings in the form of a dividend. UDR pays out 459.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UDR has raised its dividend for 14 consecutive years. VICI Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

VICI Properties beats UDR on 12 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 UDR

UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. As of December 31, 2023, UDR owned or had an ownership position in 60,336 apartment homes including 359 homes under development. For over 51 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.