Contrasting Alexander’s (NYSE:ALX) and Gaming and Leisure Properties (NASDAQ:GLPI)

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

Volatility & Risk

Alexander’s has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Gaming and Leisure Properties has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Valuation and Earnings

This table compares Alexander’s and Gaming and Leisure Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexander’s	$226.37 million	4.81	$43.44 million	$8.46	25.20
Gaming and Leisure Properties	$1.53 billion	9.01	$734.28 million	$2.87	17.49

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alexander’s	19.19%	21.45%	3.12%
Gaming and Leisure Properties	51.65%	17.41%	6.55%

Insider and Institutional Ownership

32.0% of Alexander’s shares are held by institutional investors. Comparatively, 91.1% of Gaming and Leisure Properties shares are held by institutional investors. 26.3% of Alexander’s shares are held by company insiders. Comparatively, 4.4% of Gaming and Leisure Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Alexander’s pays an annual dividend of $18.00 per share and has a dividend yield of 8.4%. Gaming and Leisure Properties pays an annual dividend of $3.04 per share and has a dividend yield of 6.1%. Alexander’s pays out 212.8% 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 105.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of current ratings and target prices for Alexander’s and Gaming and Leisure Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexander’s	1	0	0	0	1.00
Gaming and Leisure Properties	0	5	9	0	2.64

Alexander’s presently has a consensus price target of $125.00, indicating a potential downside of 41.38%. Gaming and Leisure Properties has a consensus price target of $53.96, indicating a potential upside of 7.50%. Given Gaming and Leisure Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Gaming and Leisure Properties is more favorable than Alexander’s.

Summary

Gaming and Leisure Properties beats Alexander’s on 11 of the 16 factors compared between the two stocks.

About Alexander’s

Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (REIT), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties. All references to we, us, our, Company and Alexander’s refer to Alexander’s, Inc. and its consolidated subsidiaries. We are managed by, and our properties are leased and developed by, Vornado Realty Trust (Vornado) (NYSE: VNO). We have five properties in New York City.

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.