Comparing Gaming and Leisure Properties (NASDAQ:GLPI) & ARBOR RLTY TR I/SH (NASDAQ:ABR)

Gaming and Leisure Properties (NASDAQ:GLPI) and ARBOR RLTY TR I/SH (NYSE:ABR) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Earnings & Valuation

This table compares Gaming and Leisure Properties and ARBOR RLTY TR I/SH’s top-line 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 10.08 $339.51 million $3.18 15.58
ARBOR RLTY TR I/SH $251.77 million 6.44 $115.86 million $1.21 12.21

Gaming and Leisure Properties has higher revenue and earnings than ARBOR RLTY TR I/SH. ARBOR RLTY TR I/SH 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.

Volatility and Risk

Gaming and Leisure Properties has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, ARBOR RLTY TR I/SH has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Institutional & Insider Ownership

85.5% of Gaming and Leisure Properties shares are held by institutional investors. Comparatively, 38.2% of ARBOR RLTY TR I/SH shares are held by institutional investors. 6.1% of Gaming and Leisure Properties shares are held by insiders. Comparatively, 10.5% of ARBOR RLTY TR I/SH shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Gaming and Leisure Properties pays an annual dividend of $2.80 per share and has a dividend yield of 5.6%. ARBOR RLTY TR I/SH pays an annual dividend of $1.20 per share and has a dividend yield of 8.1%. Gaming and Leisure Properties pays out 88.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ARBOR RLTY TR I/SH pays out 99.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gaming and Leisure Properties has raised its dividend for 5 consecutive years and ARBOR RLTY TR I/SH has raised its dividend for 8 consecutive years. ARBOR RLTY TR I/SH is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Gaming and Leisure Properties and ARBOR RLTY TR I/SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gaming and Leisure Properties 27.62% 14.76% 3.76%
ARBOR RLTY TR I/SH 44.18% 13.03% 2.69%

Analyst Recommendations

This is a summary of current ratings and target prices for Gaming and Leisure Properties and ARBOR RLTY TR I/SH, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gaming and Leisure Properties 0 1 8 0 2.89
ARBOR RLTY TR I/SH 0 2 3 0 2.60

Gaming and Leisure Properties currently has a consensus target price of $46.00, suggesting a potential downside of 7.18%. ARBOR RLTY TR I/SH has a consensus target price of $13.70, suggesting a potential downside of 7.31%. Given Gaming and Leisure Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Gaming and Leisure Properties is more favorable than ARBOR RLTY TR I/SH.

Summary

Gaming and Leisure Properties beats ARBOR RLTY TR I/SH on 12 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 ARBOR RLTY TR I/SH

Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily and commercial real estate markets. The company operates in two segments, Structured Business and Agency Business. It primarily invests in real estate-related bridge and mezzanine loans, including junior participating interests in first mortgages, and preferred and direct equity, as well as real estate-related notes and various mortgage-related securities. The company offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; financing by making preferred equity investments in entities that directly or indirectly own real property; mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower's equity in a transaction; and junior participation financing in the form of a junior participating interest in the senior debt. In addition, it underwrites, originates, sells, and services multifamily mortgage loans. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2003 and is headquartered in Uniondale, New York.

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