Reviewing Gaming and Leisure Properties (NASDAQ:GLPI) and Potlatchdeltic (NASDAQ:PCH)
Gaming and Leisure Properties (NASDAQ:GLPI) and Potlatchdeltic (NASDAQ:PCH) are both mid-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.
Earnings and Valuation
This table compares Gaming and Leisure Properties and Potlatchdeltic’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gaming and Leisure Properties||$1.06 billion||7.93||$339.51 million||$3.18||12.26|
|Potlatchdeltic||$974.58 million||2.70||$122.88 million||$2.28||17.10|
Volatility and Risk
Gaming and Leisure Properties has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Potlatchdeltic has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Gaming and Leisure Properties and Potlatchdeltic, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gaming and Leisure Properties||0||2||7||0||2.78|
Gaming and Leisure Properties presently has a consensus price target of $42.56, indicating a potential upside of 9.17%. Potlatchdeltic has a consensus price target of $43.18, indicating a potential upside of 10.76%. Given Potlatchdeltic’s stronger consensus rating and higher possible upside, analysts plainly believe Potlatchdeltic is more favorable than Gaming and Leisure Properties.
This table compares Gaming and Leisure Properties and Potlatchdeltic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gaming and Leisure Properties||30.54%||14.58%||4.09%|
Institutional and Insider Ownership
88.3% of Gaming and Leisure Properties shares are held by institutional investors. Comparatively, 87.7% of Potlatchdeltic shares are held by institutional investors. 6.1% of Gaming and Leisure Properties shares are held by insiders. Comparatively, 3.0% of Potlatchdeltic shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Gaming and Leisure Properties pays an annual dividend of $2.72 per share and has a dividend yield of 7.0%. Potlatchdeltic pays an annual dividend of $1.60 per share and has a dividend yield of 4.1%. Gaming and Leisure Properties pays out 85.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Potlatchdeltic pays out 70.2% of its earnings in the form of a dividend. Gaming and Leisure Properties has raised its dividend for 4 consecutive years and Potlatchdeltic has raised its dividend for 2 consecutive years. Gaming and Leisure Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Gaming and Leisure Properties beats Potlatchdeltic on 11 of the 17 factors compared between the two stocks.
About Gaming and Leisure Properties
GLPI is engaged in the business of acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements, pursuant to which the tenant is responsible for all facility maintenance, insurance required in connection with the leased properties and the business conducted on the leased properties, taxes levied on or with respect to the leased properties and all utilities and other services necessary or appropriate for the leased properties and the business conducted on the leased properties. GLPI expects to grow its portfolio by pursuing opportunities to acquire additional gaming facilities to lease to gaming operators. GLPI also intends to diversify its portfolio over time, including by acquiring properties outside the gaming industry to lease to third parties. GLPI elected to be taxed as a REIT for United States federal income tax purposes commencing with the 2014 taxable year and is the first gaming-focused REIT in North America.
PotlatchDeltic (NASDAQ:PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 2 million acres of timberlands in Alabama, Arkansas, Idaho, Louisiana, Minnesota and Mississippi. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a medium density fiberboard plant, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest practices, is dedicated to long-term stewardship and sustainable management of its timber resources.
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