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

Profitability

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

Net Margins Return on Equity Return on Assets
MGM Growth Properties 6.21% 0.81% 0.48%
Gaming and Leisure Properties 39.58% 15.66% 5.27%

Dividends

MGM Growth Properties pays an annual dividend of $1.58 per share and has a dividend yield of 5.0%. Gaming and Leisure Properties does not pay a dividend. MGM Growth Properties pays out 205.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of current recommendations for MGM Growth Properties and Gaming and Leisure Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MGM Growth Properties 0 1 4 0 2.80
Gaming and Leisure Properties 0 0 0 0 N/A

MGM Growth Properties currently has a consensus price target of $31.20, suggesting a potential downside of 1.52%. Given MGM Growth Properties’ higher probable upside, research analysts clearly believe MGM Growth Properties is more favorable than Gaming and Leisure Properties.

Earnings & Valuation

This table compares MGM Growth Properties and Gaming and Leisure Properties’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
MGM Growth Properties $725.00 million 2.52 $613.53 million $0.77 41.14
Gaming and Leisure Properties N/A N/A N/A N/A N/A

MGM Growth Properties has higher revenue and earnings than Gaming and Leisure Properties.

About MGM Growth Properties

MGM Growth Properties LLC is a real estate investment trust engaged in the acquisition, ownership and leasing of destination entertainment and leisure resorts, whose amenities include casino gaming, hotel, convention, dining, entertainment and retail offerings. Its portfolio consists of approximately 10 destination resorts. It has over six entertainment and gaming-related properties located on the Las Vegas Strip, including Mandalay Bay, The Mirage, Monte Carlo, New York-New York, Luxor and Excalibur, and The Park, a dining and entertainment complex located between New York-New York and Monte Carlo. Outside of Las Vegas, it owns over four casino resort properties, including MGM Grand Detroit in Detroit, Michigan, Borgata Hotel Casino & Spa in Atlantic City, New Jersey, and Beau Rivage and Gold Strike Tunica, both of which are located in Mississippi. It operates approximately 27,330 hotel rooms, over 200 restaurants, approximately 100 retail outlets and over 20 entertainment venues.

About Gaming and Leisure Properties

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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