Head to Head Survey: CubeSmart (NYSE:CUBE) versus Gaming and Leisure Properties (NASDAQ:GLPI)

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

Dividends

CubeSmart pays an annual dividend of $2.12 per share and has a dividend yield of 5.4%. Gaming and Leisure Properties pays an annual dividend of $3.12 per share and has a dividend yield of 6.8%. 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 pays out 107.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CubeSmart has raised its dividend for 16 consecutive years and Gaming and Leisure Properties has raised its dividend for 2 consecutive years. Gaming and Leisure Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CubeSmart	$1.12 billion	7.93	$333.78 million	$1.45	26.95
Gaming and Leisure Properties	$1.59 billion	8.19	$825.11 million	$2.91	15.85

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 CubeSmart and Gaming and Leisure Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CubeSmart	29.72%	11.84%	4.97%
Gaming and Leisure Properties	52.24%	17.10%	6.62%

Institutional and Insider Ownership

97.6% of CubeSmart shares are owned by institutional investors. Comparatively, 91.1% of Gaming and Leisure Properties shares are owned by institutional investors. 1.8% of CubeSmart shares are owned by insiders. Comparatively, 4.3% of Gaming and Leisure Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

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

Analyst Ratings

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

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

CubeSmart presently has a consensus target price of $43.57, suggesting a potential upside of 11.50%. Gaming and Leisure Properties has a consensus target price of $52.41, suggesting a potential upside of 13.64%. Given Gaming and Leisure Properties’ stronger consensus rating and higher possible upside, analysts clearly believe Gaming and Leisure Properties is more favorable than CubeSmart.

Summary

Gaming and Leisure Properties beats CubeSmart on 12 of the 16 factors compared between the two stocks.

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.

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.