Head-To-Head Contrast: Ellington Credit (NYSE:EARN) versus VICI Properties (NYSE:VICI)

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

Insider & Institutional Ownership

97.7% of VICI Properties shares are held by institutional investors. Comparatively, 20.4% of Ellington Credit shares are held by institutional investors. 0.3% of VICI Properties shares are held by insiders. Comparatively, 2.0% of Ellington Credit shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

VICI Properties pays an annual dividend of $1.73 per share and has a dividend yield of 5.5%. Ellington Credit pays an annual dividend of $0.96 per share and has a dividend yield of 15.1%. VICI Properties pays out 64.1% of its earnings in the form of a dividend. Ellington Credit pays out 85.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares VICI Properties and Ellington Credit”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VICI Properties	$3.81 billion	8.67	$2.51 billion	$2.70	11.59
Ellington Credit	$42.55 million	3.79	$4.56 million	$1.12	5.68

VICI Properties has higher revenue and earnings than Ellington Credit. Ellington Credit 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 summary of current ratings and recommmendations for VICI Properties and Ellington Credit, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VICI Properties	0	2	7	0	2.78
Ellington Credit	0	2	0	0	2.00

VICI Properties presently has a consensus target price of $34.11, suggesting a potential upside of 8.98%. Ellington Credit has a consensus target price of $6.00, suggesting a potential downside of 5.66%. Given VICI Properties’ stronger consensus rating and higher possible upside, equities analysts clearly believe VICI Properties is more favorable than Ellington Credit.

Profitability

This table compares VICI Properties and Ellington Credit’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%
Ellington Credit	226.01%	17.20%	2.57%

Volatility and Risk

VICI Properties has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Ellington Credit has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500.

Summary

VICI Properties beats Ellington Credit on 11 of the 16 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 Ellington Credit

Ellington Credit Company, a real estate investment trust, acquires, invests in, and manages residential mortgage-and real estate-related assets. It acquires and manages residential mortgage-backed securities (RMBS), including agency pools and agency collateralized mortgage obligations (CMOs); and non-agency RMBS, such as non-agency CMOs, such as investment grade and non-investment grade. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was formerly known as Ellington Residential Mortgage REIT and changed its name to Ellington Credit Company in April 2024. Ellington Credit Company was incorporated in 2012 and is based in Old Greenwich, Connecticut.