Contrasting Gaming and Leisure Properties (NASDAQ:GLPI) & CubeSmart (NYSE:CUBE)

Gaming and Leisure Properties (NASDAQ:GLPI) and CubeSmart (NYSE:CUBE) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Risk and Volatility

Gaming and Leisure Properties has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, CubeSmart has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Gaming and Leisure Properties and CubeSmart, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gaming and Leisure Properties	0	6	6	0	2.50
CubeSmart	0	10	6	0	2.38

Gaming and Leisure Properties presently has a consensus target price of $52.30, indicating a potential upside of 8.91%. CubeSmart has a consensus target price of $43.57, indicating a potential upside of 10.04%. Given CubeSmart’s higher possible upside, analysts clearly believe CubeSmart is more favorable than Gaming and Leisure Properties.

Earnings & Valuation

This table compares Gaming and Leisure Properties and CubeSmart”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gaming and Leisure Properties	$1.59 billion	8.53	$825.11 million	$3.15	15.24
CubeSmart	$1.12 billion	8.04	$333.78 million	$1.45	27.31

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

Profitability

This table compares Gaming and Leisure Properties and CubeSmart’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gaming and Leisure Properties	55.56%	18.06%	6.93%
CubeSmart	29.72%	11.84%	4.97%

Dividends

Gaming and Leisure Properties pays an annual dividend of $3.12 per share and has a dividend yield of 6.5%. CubeSmart pays an annual dividend of $2.12 per share and has a dividend yield of 5.4%. Gaming and Leisure Properties pays out 99.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CubeSmart pays out 146.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gaming and Leisure Properties has raised its dividend for 2 consecutive years and CubeSmart has raised its dividend for 16 consecutive years. Gaming and Leisure Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

91.1% of Gaming and Leisure Properties shares are owned by institutional investors. Comparatively, 97.6% of CubeSmart shares are owned by institutional investors. 4.3% of Gaming and Leisure Properties shares are owned by insiders. Comparatively, 1.8% of CubeSmart shares are owned 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.

Summary

Gaming and Leisure Properties beats CubeSmart on 11 of the 16 factors compared between the two stocks.

About Gaming and Leisure Properties

Gaming & Leisure Properties, Inc. engages in the provision of acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements. The company was founded on February 13, 2013 and is headquartered in Wyomissing, PA.

About CubeSmart

CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and, in most locations, climate-controlled storage space for residential and commercial customers. According to the 2023 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.