Apple Hospitality REIT (APLE) & Gaming and Leisure Properties (GLPI) Financial Contrast
Apple Hospitality REIT (NYSE: APLE) and Gaming and Leisure Properties (NASDAQ:GLPI) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Apple Hospitality REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.3%. Gaming and Leisure Properties pays an annual dividend of $2.52 per share and has a dividend yield of 6.9%. Apple Hospitality REIT pays out 150.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Gaming and Leisure Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
49.2% of Apple Hospitality REIT shares are held by institutional investors. Comparatively, 89.3% of Gaming and Leisure Properties shares are held by institutional investors. 6.3% of Apple Hospitality REIT shares are held by insiders. Comparatively, 5.9% of Gaming and Leisure Properties shares are held 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.
This table compares Apple Hospitality REIT and Gaming and Leisure Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Apple Hospitality REIT||14.97%||5.05%||3.57%|
|Gaming and Leisure Properties||38.99%||17.14%||5.71%|
This is a breakdown of recent ratings and recommmendations for Apple Hospitality REIT and Gaming and Leisure Properties, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Apple Hospitality REIT||0||3||1||0||2.25|
|Gaming and Leisure Properties||1||3||3||0||2.29|
Apple Hospitality REIT currently has a consensus price target of $20.00, indicating a potential upside of 5.32%. Gaming and Leisure Properties has a consensus price target of $38.80, indicating a potential upside of 5.84%. Given Gaming and Leisure Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Gaming and Leisure Properties is more favorable than Apple Hospitality REIT.
Risk and Volatility
Apple Hospitality REIT has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Gaming and Leisure Properties has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.
Valuation and Earnings
This table compares Apple Hospitality REIT and Gaming and Leisure Properties’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Apple Hospitality REIT||$1.18 billion||3.59||$420.26 million||$0.80||23.74|
|Gaming and Leisure Properties||$958.18 million||N/A||$716.53 million||$1.78||20.60|
Gaming and Leisure Properties has higher revenue, but lower earnings than Apple Hospitality REIT. Gaming and Leisure Properties is trading at a lower price-to-earnings ratio than Apple Hospitality REIT, indicating that it is currently the more affordable of the two stocks.
Gaming and Leisure Properties beats Apple Hospitality REIT on 13 of the 15 factors compared between the two stocks.
Apple Hospitality REIT Company Profile
Apple Hospitality REIT, Inc. is a hospitality real estate investment trust. The Company invests in real estate, primarily in the lodging sector, in the United States. As of September 13, 2017, the Company owned 237 hotels, with more than 30,000 guestrooms, diversified across the Hilton and Marriott families of brands with locations in urban, high-end suburban and developing markets across 33 states. As of December 31, 2016, the Company’s hotels included various brands, such as Hilton Garden Inn, Courtyard, Homewood Suites, Residence Inn, SpringHill Suites, TownePlace Suites, Fairfield Inn, Home2 Suites, Marriott, Embassy Suites, Hilton and Renaissance. As of December 31, 2016, the Company’s hotels were located in various states of the United States, such as Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Maryland, Michigan, Minnesota, Nebraska, New Jersey, North Carolina, Ohio, South Carolina, Texas, Utah and Virginia.
Gaming and Leisure Properties Company Profile
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.
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