Gaming and Leisure Properties (NASDAQ: GLPI) and Ashford Hospitality Prime (NYSE:AHP) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.
This table compares Gaming and Leisure Properties and Ashford Hospitality Prime’s 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%|
|Ashford Hospitality Prime||5.56%||6.28%||1.57%|
Gaming and Leisure Properties pays an annual dividend of $2.52 per share and has a dividend yield of 7.5%. Ashford Hospitality Prime pays an annual dividend of $0.64 per share and has a dividend yield of 6.5%. 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. Ashford Hospitality Prime pays out 160.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ashford Hospitality Prime has increased its dividend for 3 consecutive years. Gaming and Leisure Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of recent ratings and recommmendations for Gaming and Leisure Properties and Ashford Hospitality Prime, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gaming and Leisure Properties||1||3||4||0||2.38|
|Ashford Hospitality Prime||0||3||3||0||2.50|
Gaming and Leisure Properties currently has a consensus price target of $37.86, suggesting a potential upside of 13.07%. Ashford Hospitality Prime has a consensus price target of $12.60, suggesting a potential upside of 27.40%. Given Ashford Hospitality Prime’s stronger consensus rating and higher possible upside, analysts plainly believe Ashford Hospitality Prime is more favorable than Gaming and Leisure Properties.
Risk & Volatility
Gaming and Leisure Properties has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Ashford Hospitality Prime has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.
Valuation & Earnings
This table compares Gaming and Leisure Properties and Ashford Hospitality Prime’s 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||7.35||$380.59 million||$1.78||18.81|
|Ashford Hospitality Prime||$414.06 million||0.77||$23.02 million||$0.40||24.73|
Gaming and Leisure Properties has higher revenue and earnings than Ashford Hospitality Prime. Gaming and Leisure Properties is trading at a lower price-to-earnings ratio than Ashford Hospitality Prime, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
92.7% of Gaming and Leisure Properties shares are owned by institutional investors. Comparatively, 68.4% of Ashford Hospitality Prime shares are owned by institutional investors. 5.9% of Gaming and Leisure Properties shares are owned by company insiders. Comparatively, 10.0% of Ashford Hospitality Prime shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Gaming and Leisure Properties beats Ashford Hospitality Prime on 11 of the 17 factors compared between the two stocks.
About Gaming and Leisure Properties
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.
About Ashford Hospitality Prime
Ashford Hospitality Prime, Inc. invests in high revenue per available room (RevPAR), luxury hotels and resorts. The Company conducts its business and owns all of its assets through its operating partnership, Ashford Hospitality Prime Limited Partnership (Ashford Prime OP). The Company operates in the direct hotel investment segment of the hotel lodging industry. As of February 24, 2017, it owned interests in 11 hotel properties in six states, the District of Columbia and St. Thomas, the United States Virgin Islands with 3,702 total rooms, or 3,467 net rooms, excluding those attributable to its joint venture partner. The hotel properties in its portfolio are mainly located in the Unites States urban markets. The Company owns nine of its hotel properties directly, and the remaining two hotel properties through an investment in a majority-owned consolidated entity. All of the hotels in the Company’s portfolio are asset-managed by Ashford Hospitality Advisors LLC.
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