Critical Review: Gaming and Leisure Properties (NASDAQ:GLPI) versus Hudson Pacific Properties (NYSE:HPP)

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

Earnings & Valuation

This table compares Gaming and Leisure Properties and Hudson Pacific Properties”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	7.85	$825.11 million	$3.15	14.03
Hudson Pacific Properties	$831.10 million	0.95	-$561.69 million	($10.10)	-1.45

Gaming and Leisure Properties has higher revenue and earnings than Hudson Pacific Properties. Hudson Pacific Properties 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.

Risk and Volatility

Gaming and Leisure Properties has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Hudson Pacific Properties has a beta of 1.94, meaning that its share price is 94% more volatile than the S&P 500.

Institutional & Insider Ownership

91.1% of Gaming and Leisure Properties shares are held by institutional investors. Comparatively, 97.6% of Hudson Pacific Properties shares are held by institutional investors. 4.1% of Gaming and Leisure Properties shares are held by insiders. Comparatively, 2.5% of Hudson Pacific Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Gaming and Leisure Properties and Hudson Pacific Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gaming and Leisure Properties	0	5	6	0	2.55
Hudson Pacific Properties	3	6	3	1	2.15

Gaming and Leisure Properties presently has a consensus price target of $52.20, suggesting a potential upside of 18.13%. Hudson Pacific Properties has a consensus price target of $13.48, suggesting a potential downside of 7.64%. Given Gaming and Leisure Properties’ stronger consensus rating and higher probable upside, equities analysts clearly believe Gaming and Leisure Properties is more favorable than Hudson Pacific Properties.

Profitability

This table compares Gaming and Leisure Properties and Hudson Pacific Properties’ 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%
Hudson Pacific Properties	-67.89%	-19.05%	-7.27%

Summary

Gaming and Leisure Properties beats Hudson Pacific Properties on 12 of the 15 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 Hudson Pacific Properties

Hudson Pacific Properties (NYSE: HPP) is a real estate investment trust serving dynamic tech and media tenants in global epicenters for these synergistic, converging and secular growth industries. Hudson Pacific's unique and high-barrier tech and media focus leverages a full-service, end-to-end value creation platform forged through deep strategic relationships and niche expertise across identifying, acquiring, transforming and developing properties into world-class amenitized, collaborative and sustainable office and studio space.