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

Profitability

This table compares Gaming and Leisure Properties and VICI Properties’ 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%
VICI Properties N/A N/A N/A

Institutional & Insider Ownership

92.7% of Gaming and Leisure Properties shares are owned by institutional investors. 5.9% of Gaming and Leisure Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Gaming and Leisure Properties and VICI Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gaming and Leisure Properties 1 3 4 0 2.38
VICI Properties 0 4 1 0 2.20

Gaming and Leisure Properties presently has a consensus price target of $37.86, suggesting a potential upside of 11.15%. VICI Properties has a consensus price target of $21.75, suggesting a potential upside of 12.00%. Given VICI Properties’ higher probable upside, analysts clearly believe VICI Properties is more favorable than Gaming and Leisure Properties.

Valuation and Earnings

This table compares Gaming and Leisure Properties and VICI Properties’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gaming and Leisure Properties $971.31 million 7.48 $380.59 million $1.78 19.13
VICI Properties N/A N/A N/A N/A N/A

Gaming and Leisure Properties has higher revenue and earnings than VICI Properties.

Dividends

Gaming and Leisure Properties pays an annual dividend of $2.52 per share and has a dividend yield of 7.4%. VICI Properties does not pay a dividend. 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.

Summary

Gaming and Leisure Properties beats VICI Properties on 9 of the 11 factors compared between the two stocks.

Gaming and Leisure Properties Company Profile

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.

VICI Properties Company Profile

VICI Properties Inc. is a real estate investment trust. The Company is primarily engaged in the business of owning, acquiring and developing gaming, hospitality and entertainment destinations. It operates through two segments: real property business and golf course business. The real property business segment consists of leased real property. The golf course business segment consists of four golf courses. Its golf courses include the Cascata golf course in Boulder City, Nevada, the Rio Secco golf course in Henderson, Nevada, the Grand Bear golf course in Biloxi, Mississippi, and the Chariot Run golf course in Elizabeth, Indiana.

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