Comparing Gaming and Leisure Properties (GLPI) and Pebblebrook Hotel Trust (PEB)
Gaming and Leisure Properties (NASDAQ: GLPI) and Pebblebrook Hotel Trust (NYSE:PEB) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.
This table compares Gaming and Leisure Properties and Pebblebrook Hotel Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gaming and Leisure Properties||38.99%||17.14%||5.71%|
|Pebblebrook Hotel Trust||5.09%||2.59%||1.45%|
Risk & Volatility
Gaming and Leisure Properties has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Pebblebrook Hotel Trust has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.
Earnings and Valuation
This table compares Gaming and Leisure Properties and Pebblebrook Hotel Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Gaming and Leisure Properties||N/A||N/A||N/A||$1.78||20.67|
|Pebblebrook Hotel Trust||$796.77 million||3.03||$242.63 million||$0.30||116.90|
Pebblebrook Hotel 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 Pebblebrook Hotel Trust, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Gaming and Leisure Properties and Pebblebrook Hotel Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gaming and Leisure Properties||1||3||3||0||2.29|
|Pebblebrook Hotel Trust||2||3||5||0||2.30|
Gaming and Leisure Properties presently has a consensus target price of $38.80, suggesting a potential upside of 5.43%. Pebblebrook Hotel Trust has a consensus target price of $34.31, suggesting a potential downside of 2.16%. Given Gaming and Leisure Properties’ higher probable upside, equities analysts clearly believe Gaming and Leisure Properties is more favorable than Pebblebrook Hotel Trust.
Insider & Institutional Ownership
89.3% of Gaming and Leisure Properties shares are owned by institutional investors. 5.9% of Gaming and Leisure Properties shares are owned by insiders. Comparatively, 2.0% of Pebblebrook Hotel Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Gaming and Leisure Properties pays an annual dividend of $2.52 per share and has a dividend yield of 6.8%. Pebblebrook Hotel Trust pays an annual dividend of $1.52 per share and has a dividend yield of 4.3%. 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. Pebblebrook Hotel Trust pays out 506.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pebblebrook Hotel Trust has increased its dividend for 4 consecutive years. Gaming and Leisure Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Gaming and Leisure Properties beats Pebblebrook Hotel Trust on 9 of the 15 factors compared between the two stocks.
About Gaming and Leisure Properties
Gaming and Leisure Properties, Inc. (GLPI) is a self-administered and self-managed Pennsylvania real estate investment trust (REIT). The Company is engaged in the business of acquiring, financing and owning real estate property to be leased to gaming operators in triple net lease arrangements. Its segments include GLP Capital, L.P. (GLP Capital), through which the Company owns all of its real estate assets, and the TRS Properties, which consists of Hollywood Casino Perryville and Hollywood Casino Baton Rouge. The GLP Capital segment consists of the leased real property. As of December 31, 2016, the Company had 34 rental properties, consisting of the real property associated with 18 gaming and related facilities operated by Penn National Gaming, Inc. (Penn), the real property associated with 15 gaming and related facilities operated by Pinnacle Entertainment, Inc. (Pinnacle), and the real property associated with the Casino Queen in East St. Louis, Illinois.
About Pebblebrook Hotel Trust
Pebblebrook Hotel Trust is an internally managed hotel investment company. The Company is a real estate investment trust (REIT) that acquires and invests in hotel properties located primarily in cities of the United States. As of December 31, 2016, the Company owned 29 hotels with a total of 7,219 guest rooms. The hotels are located in the markets: Atlanta (Buckhead), Georgia; Boston, Massachusetts; Miami (Coral Gables), Florida; Minneapolis, Minnesota; Naples, Florida; Nashville, Tennessee; New York, New York; Philadelphia, Pennsylvania; Portland, Oregon; San Diego, California; San Francisco, California; Santa Monica, California; Seattle, Washington; Stevenson, Washington; Washington, D.C.; West Hollywood, California, and Los Angeles (Beverly Hills), California. The Company’s assets are held by, and all of the operations are conducted through, Pebblebrook Hotel, L.P. (the Operating Partnership).
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