VICI Properties (NYSE:VICI) vs. Rithm Capital (NYSE:RITM) Head to Head Analysis

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

Volatility & Risk

VICI Properties has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Rithm Capital has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for VICI Properties and Rithm Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VICI Properties	0	2	7	0	2.78
Rithm Capital	0	1	8	0	2.89

VICI Properties presently has a consensus target price of $34.00, suggesting a potential upside of 3.75%. Rithm Capital has a consensus target price of $12.67, suggesting a potential upside of 16.64%. Given Rithm Capital’s stronger consensus rating and higher possible upside, analysts clearly believe Rithm Capital is more favorable than VICI Properties.

Valuation and Earnings

This table compares VICI Properties and Rithm Capital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VICI Properties	$3.74 billion	9.13	$2.51 billion	$2.53	12.95
Rithm Capital	$2.44 billion	2.15	$622.26 million	$1.50	7.24

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

Profitability

This table compares VICI Properties and Rithm Capital’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%
Rithm Capital	15.55%	18.04%	2.63%

Dividends

VICI Properties pays an annual dividend of $1.73 per share and has a dividend yield of 5.3%. Rithm Capital pays an annual dividend of $1.00 per share and has a dividend yield of 9.2%. VICI Properties pays out 68.4% of its earnings in the form of a dividend. Rithm Capital pays out 66.7% 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. Rithm Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

97.7% of VICI Properties shares are held by institutional investors. Comparatively, 44.9% of Rithm Capital shares are held by institutional investors. 0.3% of VICI Properties shares are held by insiders. Comparatively, 0.4% of Rithm Capital shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

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 Rithm Capital

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based in New York, New York.