Analyzing RLJ Lodging Trust (RLJ) and Gaming and Leisure Properties (GLPIV)
RLJ Lodging Trust (NYSE: RLJ) and Gaming and Leisure Properties (NASDAQ:GLPIV) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.
Valuation and Earnings
This table compares RLJ Lodging Trust and Gaming and Leisure Properties’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|RLJ Lodging Trust||$1.12 billion||2.18||$355.90 million||$1.45||13.59|
|Gaming and Leisure Properties||N/A||N/A||N/A||N/A||N/A|
RLJ Lodging Trust has higher revenue and earnings than Gaming and Leisure Properties.
This is a summary of current ratings and price targets for RLJ Lodging Trust and Gaming and Leisure Properties, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|RLJ Lodging Trust||2||2||4||0||2.25|
|Gaming and Leisure Properties||0||0||0||0||N/A|
RLJ Lodging Trust currently has a consensus price target of $24.38, suggesting a potential upside of 23.73%. Given RLJ Lodging Trust’s higher probable upside, equities analysts clearly believe RLJ Lodging Trust is more favorable than Gaming and Leisure Properties.
RLJ Lodging Trust pays an annual dividend of $1.32 per share and has a dividend yield of 6.7%. Gaming and Leisure Properties does not pay a dividend. RLJ Lodging Trust pays out 91.0% 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 has increased its dividend for 6 consecutive years.
This table compares RLJ Lodging Trust and Gaming and Leisure Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|RLJ Lodging Trust||16.12%||8.16%||4.52%|
|Gaming and Leisure Properties||39.58%||15.66%||5.27%|
Institutional and Insider Ownership
99.9% of RLJ Lodging Trust shares are owned by institutional investors. 2.3% of RLJ Lodging Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
RLJ Lodging Trust beats Gaming and Leisure Properties on 6 of the 11 factors compared between the two stocks.
RLJ Lodging Trust Company Profile
RLJ Lodging Trust is a self-administered real estate investment trust. The Company is engaged in the acquisition of focused-service and compact full-service hotels. As of December 31, 2016, the Company owned 122 hotels with approximately 20,100 rooms, located in 21 states and the District of Columbia, and an interest in one mortgage loan secured by a hotel. Its hotels’ brand affiliations include Residence Inn, Courtyard, SpringHill Suites, Fairfield Inn & Suites, Marriott, Renaissance, Hilton Garden Inn, Hampton Inn/Hampton Inn & Suites, Embassy Suites, DoubleTree, Homewood Suites, Hilton, Hyatt House, Hyatt Place and Hyatt/Hyatt Centric. Its operating partnership is RLJ Lodging Trust, L.P. Its properties include Courtyard San Francisco, Courtyard Boulder Longmont, Residence Inn Longmont Boulder, DoubleTree Grand Key Resort, Courtyard Atlanta Buckhead, Courtyard Chicago Southeast Hammond, Courtyard Louisville Northeast, DoubleTree Hotel Columbia and Residence Inn Detroit Novi.
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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