Contrasting Digital Realty Trust (NYSE:DLR) and Gaming and Leisure Properties (NASDAQ:GLPI)

Gaming and Leisure Properties (NASDAQ:GLPI) and Digital Realty Trust (NYSE:DLR) are both large-cap real estate companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Dividends

Gaming and Leisure Properties pays an annual dividend of $3.28 per share and has a dividend yield of 7.5%. Digital Realty Trust pays an annual dividend of $4.88 per share and has a dividend yield of 2.4%. Gaming and Leisure Properties pays out 96.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Digital Realty Trust pays out 236.9% 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 has increased its dividend for 2 consecutive years. Gaming and Leisure Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

91.1% of Gaming and Leisure Properties shares are held by institutional investors. Comparatively, 99.7% of Digital Realty Trust shares are held by institutional investors. 4.1% of Gaming and Leisure Properties shares are held by insiders. Comparatively, 0.2% of Digital Realty Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Gaming and Leisure Properties and Digital Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gaming and Leisure Properties	59.01%	19.17%	7.29%
Digital Realty Trust	11.80%	3.34%	1.59%

Valuation & Earnings

This table compares Gaming and Leisure Properties and Digital 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	$1.66 billion	7.66	$825.11 million	$3.41	12.78
Digital Realty Trust	$6.11 billion	12.11	$1.31 billion	$2.06	97.12

Digital Realty Trust has higher revenue and earnings than Gaming and Leisure Properties. Gaming and Leisure Properties is trading at a lower price-to-earnings ratio than Digital Realty Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Gaming and Leisure Properties and Digital Realty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gaming and Leisure Properties	0	6	6	0	2.50
Digital Realty Trust	0	6	25	1	2.84

Gaming and Leisure Properties currently has a consensus price target of $49.91, indicating a potential upside of 14.55%. Digital Realty Trust has a consensus price target of $219.13, indicating a potential upside of 9.53%. Given Gaming and Leisure Properties’ higher possible upside, equities analysts plainly believe Gaming and Leisure Properties is more favorable than Digital Realty Trust.

Volatility and Risk

Gaming and Leisure Properties has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Digital Realty Trust has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

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 Digital Realty Trust

Digital Realty Trust, Inc. operates as a real estate investment trust, which engages in the provision of data center, colocation and interconnection solutions. It serves the following industries: artificial intelligence (AI), networks, cloud, digital media, mobile, financial services, healthcare, and gaming. The company was founded on March 9, 2004, and is headquartered in Dallas, TX.