Head to Head Survey: Summit Hotel Properties (INN) and Gaming and Leisure Properties (GLPI)

Summit Hotel Properties (NYSE: INN) and Gaming and Leisure Properties (NASDAQ:GLPI) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Summit Hotel Properties and Gaming and Leisure Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Summit Hotel Properties 1 1 7 0 2.67
Gaming and Leisure Properties 0 2 4 0 2.67

Summit Hotel Properties currently has a consensus target price of $17.19, indicating a potential upside of 10.46%. Gaming and Leisure Properties has a consensus target price of $40.20, indicating a potential upside of 10.35%. Given Summit Hotel Properties’ higher probable upside, equities research analysts clearly believe Summit Hotel Properties is more favorable than Gaming and Leisure Properties.

Profitability

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

Net Margins Return on Equity Return on Assets
Summit Hotel Properties 20.21% 8.96% 5.28%
Gaming and Leisure Properties 39.31% 17.37% 5.83%

Institutional & Insider Ownership

95.6% of Summit Hotel Properties shares are owned by institutional investors. Comparatively, 92.0% of Gaming and Leisure Properties shares are owned by institutional investors. 1.7% of Summit Hotel Properties shares are owned by insiders. Comparatively, 5.9% of Gaming and Leisure Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Summit Hotel Properties pays an annual dividend of $0.68 per share and has a dividend yield of 4.4%. Gaming and Leisure Properties pays an annual dividend of $2.52 per share and has a dividend yield of 6.9%. Summit Hotel Properties pays out 82.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gaming and Leisure Properties pays out 140.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Summit Hotel Properties has increased its dividend for 4 consecutive years.

Risk and Volatility

Summit Hotel Properties has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Gaming and Leisure Properties has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Valuation & Earnings

This table compares Summit Hotel Properties and Gaming and Leisure Properties’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Summit Hotel Properties $473.93 million 3.42 $107.80 million $0.82 18.98
Gaming and Leisure Properties $828.26 million 9.35 $289.30 million $1.80 20.24

Gaming and Leisure Properties has higher revenue and earnings than Summit Hotel Properties. Summit Hotel Properties 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.

Summary

Gaming and Leisure Properties beats Summit Hotel Properties on 10 of the 16 factors compared between the two stocks.

Summit Hotel Properties Company Profile

Summit Hotel Properties, Inc. is a real estate investment trust (REIT). The Company is focused primarily on owning premium-branded, select-service hotels in the Upscale segment of the United States lodging industry. The Company’s portfolio consists of 83 hotels with a total of 12,242 guestrooms located in 26 states. The Company’s hotels are located in markets, such as business and corporate headquarters, retail centers, airports and tourist attractions. The Company’s portfolio is located in urban and suburban markets. Based on total number of guestrooms, approximately 89% of the Company’s portfolio is positioned in over 50 metropolitan statistical areas (MSAs), and approximately 96% is located within over 100 MSAs. Based on total number of guestrooms, approximately 99% of the Company’s hotels operate under franchise brands owned by Marriott International, Inc., Hilton Worldwide, InterContinental Hotels Group, and an affiliate of Hyatt Hotels Corporation.

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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