Gaming and Leisure Properties (NASDAQ: GLPI) and Diamondrock Hospitality (NYSE:DRH) are both mid-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.
This is a breakdown of current recommendations for Gaming and Leisure Properties and Diamondrock Hospitality, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gaming and Leisure Properties||1||3||4||0||2.38|
Volatility & Risk
Gaming and Leisure Properties has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Diamondrock Hospitality has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.
This table compares Gaming and Leisure Properties and Diamondrock Hospitality’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%|
Institutional & Insider Ownership
92.7% of Gaming and Leisure Properties shares are owned by institutional investors. 5.9% of Gaming and Leisure Properties shares are owned by insiders. Comparatively, 1.1% of Diamondrock Hospitality shares are owned by 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 pays an annual dividend of $2.52 per share and has a dividend yield of 7.5%. Diamondrock Hospitality pays an annual dividend of $0.50 per share and has a dividend yield of 4.7%. Gaming and Leisure Properties pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Diamondrock Hospitality pays out 50.0% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Gaming and Leisure Properties and Diamondrock Hospitality’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||7.40||$380.59 million||$3.15||10.70|
|Diamondrock Hospitality||$870.01 million||2.43||$91.87 million||$1.00||10.54|
Gaming and Leisure Properties has higher revenue and earnings than Diamondrock Hospitality. Diamondrock Hospitality 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.
Gaming and Leisure Properties beats Diamondrock Hospitality on 12 of the 16 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.
Diamondrock Hospitality Company Profile
DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in top gateway markets and destination resort locations. As of February 26, 2018, the Company owns 28 premium quality hotels with over 9,600 rooms. The Company has strategically positioned its hotels to be operated both under leading global brand families such as Hilton and Marriott as well as unique boutique hotels in the lifestyle segment. For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company's website at www.drhc.com.
Receive News & Ratings for Gaming and Leisure Properties Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Gaming and Leisure Properties and related companies with MarketBeat.com's FREE daily email newsletter.