Gaming and Leisure Properties (NASDAQ:GLPI) and Brixmor Property Group (NYSE:BRX) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.
This table compares Gaming and Leisure Properties and Brixmor Property Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gaming and Leisure Properties||30.54%||14.58%||4.09%|
|Brixmor Property Group||30.47%||12.96%||4.36%|
Gaming and Leisure Properties pays an annual dividend of $2.72 per share and has a dividend yield of 6.8%. Brixmor Property Group pays an annual dividend of $1.12 per share and has a dividend yield of 6.2%. Gaming and Leisure Properties pays out 85.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brixmor Property Group pays out 60.5% of its earnings in the form of a dividend. Gaming and Leisure Properties has raised its dividend for 4 consecutive years and Brixmor Property Group has raised its dividend for 3 consecutive years. Gaming and Leisure Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Gaming and Leisure Properties and Brixmor Property Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gaming and Leisure Properties||$1.06 billion||8.14||$339.51 million||$3.18||12.58|
|Brixmor Property Group||$1.23 billion||4.35||$366.28 million||$1.85||9.74|
Brixmor Property Group has higher revenue and earnings than Gaming and Leisure Properties. Brixmor Property Group 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.
Institutional & Insider Ownership
88.0% of Gaming and Leisure Properties shares are held by institutional investors. Comparatively, 98.2% of Brixmor Property Group shares are held by institutional investors. 5.9% of Gaming and Leisure Properties shares are held by company insiders. Comparatively, 0.4% of Brixmor Property Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent recommendations for Gaming and Leisure Properties and Brixmor Property Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gaming and Leisure Properties||0||2||6||0||2.75|
|Brixmor Property Group||0||7||5||0||2.42|
Gaming and Leisure Properties currently has a consensus target price of $41.33, indicating a potential upside of 3.31%. Brixmor Property Group has a consensus target price of $18.50, indicating a potential upside of 2.66%. Given Gaming and Leisure Properties’ stronger consensus rating and higher probable upside, analysts plainly believe Gaming and Leisure Properties is more favorable than Brixmor Property Group.
Risk and Volatility
Gaming and Leisure Properties has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Brixmor Property Group has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.
Gaming and Leisure Properties beats Brixmor Property Group on 11 of the 17 factors compared between the two stocks.
About Gaming and Leisure Properties
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.
About Brixmor Property Group
Brixmor (NYSE: BRX) is a real estate investment trust (REIT) that owns and operates a high-quality, national portfolio of open-air shopping centers. Its 425 retail centers comprise approximately 74 million square feet of prime retail space in established trade areas. The Company strives to own and operate shopping centers that reflect Brixmor's vision "to be the center of the communities we serve" and are home to a diverse mix of thriving national, regional and local retailers. Brixmor is a proud real estate partner to more than 5,000 retailers including The TJX Companies, The Kroger Co., Publix Super Markets, Wal-Mart, Ross Stores and L.A. Fitness.
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