Gaming and Leisure Properties (NASDAQ: GLPI) and LaSalle Hotel Properties (NYSE:LHO) are both mid-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Profitability

This table compares Gaming and Leisure Properties and LaSalle Hotel Properties’ 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%
LaSalle Hotel Properties 27.85% 13.05% 8.48%

Risk & Volatility

Gaming and Leisure Properties has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, LaSalle Hotel Properties has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Valuation & Earnings

This table compares Gaming and Leisure Properties and LaSalle Hotel Properties’ top-line revenue, earnings per share (EPS) 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 21.61
LaSalle Hotel Properties $1.18 billion 2.69 $371.93 million $2.69 10.41

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

Dividends

Gaming and Leisure Properties pays an annual dividend of $2.48 per share and has a dividend yield of 6.4%. LaSalle Hotel Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.4%. Gaming and Leisure Properties pays out 139.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LaSalle Hotel Properties pays out 66.9% of its earnings in the form of a dividend. Gaming and Leisure Properties has increased its dividend for 5 consecutive years. Gaming and Leisure Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and price targets for Gaming and Leisure Properties and LaSalle Hotel Properties, 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
LaSalle Hotel Properties 2 10 1 0 1.92

Gaming and Leisure Properties presently has a consensus target price of $38.67, indicating a potential upside of 0.54%. LaSalle Hotel Properties has a consensus target price of $28.46, indicating a potential upside of 1.60%. Given LaSalle Hotel Properties’ higher possible upside, analysts plainly believe LaSalle Hotel Properties is more favorable than Gaming and Leisure Properties.

Institutional & Insider Ownership

89.4% of Gaming and Leisure Properties shares are held by institutional investors. 5.9% of Gaming and Leisure Properties shares are held by company insiders. Comparatively, 0.4% of LaSalle Hotel Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Gaming and Leisure Properties beats LaSalle Hotel Properties on 9 of the 15 factors compared between the two stocks.

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.

LaSalle Hotel Properties Company Profile

LaSalle Hotel Properties is a self-administered and self-managed real estate investment trust. The Company primarily buys, owns, redevelops and leases upscale and luxury full-service hotels located in convention, resort and urban business markets. As of December 31, 2016, the Company owned interests in 46 hotels with approximately 11,450 guest rooms located in nine states of the United States and the District of Columbia (DC). As of December 31, 2016, the Company’s properties included Hotel Amarano Burbank; Hilton San Diego Gaslamp Quarter; Hotel Solamar; San Diego Paradise Point Resort and Spa; The Hilton San Diego Resort and Spa; Harbor Court Hotel; The Marker San Francisco; Chamberlain West Hollywood; Le Montrose Suite Hotel; The Grafton on Sunset; Hotel George; Hotel Rouge; Mason & Rook Hotel; The Donovan; The Liaison Capitol Hill; The Marker Waterfront Resort; Hotel Chicago; Onyx Hotel; Park Central Hotel New York; The Heathman Hotel; Westin Philadelphia, and Lansdowne Resort.

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