Gaming and Leisure Properties (GLPI) versus Empire State Realty Trust (ESRT) Financial Analysis
Gaming and Leisure Properties (NASDAQ:GLPI) and Empire State Realty Trust (NYSE:ESRT) are both mid-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.
Gaming and Leisure Properties pays an annual dividend of $2.72 per share and has a dividend yield of 7.1%. Empire State Realty Trust pays an annual dividend of $0.42 per share and has a dividend yield of 2.7%. Gaming and Leisure Properties pays out 86.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Empire State Realty Trust pays out 43.8% of its earnings in the form of a dividend. Gaming and Leisure Properties has raised its dividend for 4 consecutive years. Gaming and Leisure Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of current ratings for Gaming and Leisure Properties and Empire State Realty Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gaming and Leisure Properties||1||3||6||0||2.50|
|Empire State Realty Trust||0||4||1||0||2.20|
Gaming and Leisure Properties presently has a consensus price target of $39.60, indicating a potential upside of 3.80%. Empire State Realty Trust has a consensus price target of $20.00, indicating a potential upside of 28.87%. Given Empire State Realty Trust’s higher possible upside, analysts plainly believe Empire State Realty Trust is more favorable than Gaming and Leisure Properties.
This table compares Gaming and Leisure Properties and Empire State Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gaming and Leisure Properties||38.95%||16.10%||5.15%|
|Empire State Realty Trust||12.39%||4.48%||2.17%|
Valuation & Earnings
This table compares Gaming and Leisure Properties and Empire State Realty Trust’s gross 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||8.41||$380.59 million||$3.15||12.11|
|Empire State Realty Trust||$712.47 million||3.79||$63.58 million||$0.96||16.17|
Gaming and Leisure Properties has higher revenue and earnings than Empire State Realty Trust. Gaming and Leisure Properties is trading at a lower price-to-earnings ratio than Empire State Realty Trust, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Gaming and Leisure Properties has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Empire State Realty Trust has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.
Institutional and Insider Ownership
89.3% of Gaming and Leisure Properties shares are held by institutional investors. Comparatively, 71.4% of Empire State Realty Trust shares are held by institutional investors. 5.9% of Gaming and Leisure Properties shares are held by company insiders. Comparatively, 11.5% of Empire State Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Gaming and Leisure Properties beats Empire State Realty Trust on 12 of the 17 factors compared between the two stocks.
Gaming and Leisure Properties Company Profile
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.
Empire State Realty Trust Company Profile
Empire State Realty Trust, Inc. (NYSE: ESRT), a leading real estate investment trust (REIT), owns, manages, operates, acquires and repositions office and retail properties in Manhattan and the greater New York metropolitan area, including the Empire State Building, the world's most famous building. Headquartered in New York, New York, the Company's office and retail portfolio covers 10.1 million rentable square feet, as of September 30, 2018, consisting of 9.4 million rentable square feet in 14 office properties, including nine in Manhattan, three in Fairfield County, Connecticut, and two in Westchester County, New York; and approximately 700,000 rentable square feet in the retail portfolio.
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