Gaming and Leisure Properties (NASDAQ: GLPI) and Ashford Hospitality Prime (NYSE:AHP) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.
Insider and Institutional Ownership
95.7% of Gaming and Leisure Properties shares are held by institutional investors. Comparatively, 64.3% of Ashford Hospitality Prime shares are held by institutional investors. 5.9% of Gaming and Leisure Properties shares are held by company insiders. Comparatively, 10.0% of Ashford Hospitality Prime shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Gaming and Leisure Properties and Ashford Hospitality Prime’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gaming and Leisure Properties||$971.31 million||7.39||$380.59 million||$1.78||18.91|
|Ashford Hospitality Prime||$405.86 million||0.71||$19.31 million||($0.28)||-31.86|
Gaming and Leisure Properties has higher revenue and earnings than Ashford Hospitality Prime. Ashford Hospitality Prime is trading at a lower price-to-earnings ratio than Gaming and Leisure Properties, indicating that it is currently the more affordable of the two stocks.
This table compares Gaming and Leisure Properties and Ashford Hospitality Prime’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gaming and Leisure Properties||39.18%||17.31%||5.84%|
|Ashford Hospitality Prime||-0.36%||-0.43%||-0.10%|
Gaming and Leisure Properties pays an annual dividend of $2.52 per share and has a dividend yield of 7.5%. Ashford Hospitality Prime pays an annual dividend of $0.64 per share and has a dividend yield of 7.2%. Gaming and Leisure Properties pays out 141.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ashford Hospitality Prime pays out -228.6% of its earnings in the form of a dividend. Ashford Hospitality Prime has increased its dividend for 3 consecutive years.
Volatility & Risk
Gaming and Leisure Properties has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, Ashford Hospitality Prime has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.
This is a breakdown of recent recommendations and price targets for Gaming and Leisure Properties and Ashford Hospitality Prime, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gaming and Leisure Properties||1||3||4||0||2.38|
|Ashford Hospitality Prime||0||3||3||0||2.50|
Gaming and Leisure Properties presently has a consensus price target of $37.86, suggesting a potential upside of 12.47%. Ashford Hospitality Prime has a consensus price target of $12.50, suggesting a potential upside of 40.13%. Given Ashford Hospitality Prime’s stronger consensus rating and higher possible upside, analysts clearly believe Ashford Hospitality Prime is more favorable than Gaming and Leisure Properties.
Gaming and Leisure Properties beats Ashford Hospitality Prime on 11 of the 17 factors compared between the two stocks.
About Gaming and Leisure Properties
Gaming and Leisure Properties, Inc. (GLPI) is a self-administered and self-managed Pennsylvania real estate investment trust (REIT). The Company is engaged in the business of acquiring, financing and owning real estate property to be leased to gaming operators in triple net lease arrangements. Its segments include GLP Capital, L.P. (GLP Capital), through which the Company owns all of its real estate assets, and the TRS Properties, which consists of Hollywood Casino Perryville and Hollywood Casino Baton Rouge. The GLP Capital segment consists of the leased real property. As of December 31, 2016, the Company had 34 rental properties, consisting of the real property associated with 18 gaming and related facilities operated by Penn National Gaming, Inc. (Penn), the real property associated with 15 gaming and related facilities operated by Pinnacle Entertainment, Inc. (Pinnacle), and the real property associated with the Casino Queen in East St. Louis, Illinois.
About Ashford Hospitality Prime
Ashford Hospitality Prime, Inc. invests in high revenue per available room (RevPAR), luxury hotels and resorts. The Company conducts its business and owns all of its assets through its operating partnership, Ashford Hospitality Prime Limited Partnership (Ashford Prime OP). The Company operates in the direct hotel investment segment of the hotel lodging industry. As of February 24, 2017, it owned interests in 11 hotel properties in six states, the District of Columbia and St. Thomas, the United States Virgin Islands with 3,702 total rooms, or 3,467 net rooms, excluding those attributable to its joint venture partner. The hotel properties in its portfolio are mainly located in the Unites States urban markets. The Company owns nine of its hotel properties directly, and the remaining two hotel properties through an investment in a majority-owned consolidated entity. All of the hotels in the Company’s portfolio are asset-managed by Ashford Hospitality Advisors LLC.
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