Financial Comparison: Gaming and Leisure Properties (NASDAQ:GLPI) and Smartstop Self Storage REIT (NYSE:SMA)

Smartstop Self Storage REIT (NYSE:SMA) and Gaming and Leisure Properties (NASDAQ:GLPI) are both real estate companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.

Dividends

Smartstop Self Storage REIT pays an annual dividend of $1.63 per share and has a dividend yield of 4.8%. Gaming and Leisure Properties pays an annual dividend of $3.28 per share and has a dividend yield of 7.8%. Smartstop Self Storage REIT pays out 319.6% 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 pays out 96.2% 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 2 consecutive years. Gaming and Leisure Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Smartstop Self Storage REIT has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500. Comparatively, Gaming and Leisure Properties has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Institutional & Insider Ownership

91.1% of Gaming and Leisure Properties shares are owned by institutional investors. 5.7% of Smartstop Self Storage REIT shares are owned by company insiders. Comparatively, 4.1% of Gaming and Leisure Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Smartstop Self Storage REIT and Gaming and Leisure Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smartstop Self Storage REIT	9.68%	2.33%	1.23%
Gaming and Leisure Properties	59.01%	19.17%	7.29%

Valuation & Earnings

This table compares Smartstop Self Storage REIT and Gaming and Leisure Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smartstop Self Storage REIT	$281.14 million	6.70	-$1.55 million	$0.51	66.69
Gaming and Leisure Properties	$1.59 billion	7.71	$825.11 million	$3.41	12.39

Gaming and Leisure Properties has higher revenue and earnings than Smartstop Self Storage REIT. Gaming and Leisure Properties is trading at a lower price-to-earnings ratio than Smartstop Self Storage REIT, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for Smartstop Self Storage REIT and Gaming and Leisure Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smartstop Self Storage REIT	1	3	4	2	2.70
Gaming and Leisure Properties	0	6	6	0	2.50

Smartstop Self Storage REIT presently has a consensus target price of $36.38, indicating a potential upside of 6.95%. Gaming and Leisure Properties has a consensus target price of $49.91, indicating a potential upside of 18.13%. Given Gaming and Leisure Properties’ higher possible upside, analysts plainly believe Gaming and Leisure Properties is more favorable than Smartstop Self Storage REIT.

Summary

Gaming and Leisure Properties beats Smartstop Self Storage REIT on 14 of the 18 factors compared between the two stocks.

About Smartstop Self Storage REIT

Symmetry Medical Inc. (Symmetry) is a medical device solutions company, including surgical instruments, orthopedic implants, and sterilization cases and trays. The Company designs, develops and offers worldwide production and supply chain capabilities for these products to customers in the orthopedic industry, and other medical device markets (including but not limited to arthroscopy, dental, laparoscopy, osteobiologic, and endoscopy segments). It also manufactures specialized non-healthcare products, primarily in the aerospace industry. The Company operates in two segments: original equipment manufacturer (OEM) solutions and symmetry surgical. On August 15, 2011, the Company acquired PSC Industries, Inc’s Olsen Medical division. On December 29, 2011 it acquired the surgical instruments product portfolio from Codman & Shurtleff, Inc., a Johnson & Johnson Company.

About Gaming and Leisure Properties

Gaming & Leisure Properties, Inc. engages in the provision of acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements. The company was founded on February 13, 2013 and is headquartered in Wyomissing, PA.