Financial Survey: Life Storage (LSI) versus VICI Properties (VICI)

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

Insider & Institutional Ownership

95.2% of Life Storage shares are owned by institutional investors. 1.8% of Life Storage shares are owned by insiders. Comparatively, 0.1% of VICI Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Life Storage and VICI Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Life Storage 5 9 0 0 1.64
VICI Properties 0 4 3 0 2.43

Life Storage currently has a consensus target price of $82.08, indicating a potential downside of 15.84%. VICI Properties has a consensus target price of $22.00, indicating a potential upside of 7.47%. Given VICI Properties’ stronger consensus rating and higher probable upside, analysts clearly believe VICI Properties is more favorable than Life Storage.

Profitability

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

Net Margins Return on Equity Return on Assets
Life Storage 20.55% 5.52% 2.90%
VICI Properties N/A N/A N/A

Earnings & Valuation

This table compares Life Storage and VICI Properties’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Life Storage $529.75 million 8.56 $96.36 million $5.31 18.37
VICI Properties $187.60 million 40.39 $42.66 million N/A N/A

Life Storage has higher revenue and earnings than VICI Properties.

Dividends

Life Storage pays an annual dividend of $4.00 per share and has a dividend yield of 4.1%. VICI Properties pays an annual dividend of $0.64 per share and has a dividend yield of 3.1%. Life Storage pays out 75.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Life Storage beats VICI Properties on 8 of the 13 factors compared between the two stocks.

About Life Storage

Life Storage, Inc. is a self-administered and self-managed equity REIT that is in the business of acquiring and managing self storage facilities. Located in Buffalo, New York, the Company operates more than 700 storage facilities in 28 states. The Company serves both residential and commercial storage customers with storage units rented by month. Life Storage consistently provides responsive service to its 390,000-plus customers, making it a leader in the industry. For more information visit http://invest.lifestorage.com/.

About VICI Properties

VICI Properties Inc. owns, acquires, and develops gaming, hospitality, and entertainment destinations in the United States. The company operates through two segments, Real Property Business and Golf Course Business. Its property portfolio consists of 19 properties, including Caesars Palace, a gaming facility in the Las Vegas Strip. The company also owns and operates four golf courses. VICI Properties Inc. was founded in 2016 and is headquartered in Las Vegas, Nevada.

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