Reviewing Liberty Property Trust (LPT) and Gaming and Leisure Properties (GLPI)

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Gaming and Leisure Properties (NASDAQ:GLPI) and Liberty Property Trust (NYSE:LPT) are both mid-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitability.

Dividends

Gaming and Leisure Properties pays an annual dividend of $2.72 per share and has a dividend yield of 7.9%. Liberty Property Trust pays an annual dividend of $1.60 per share and has a dividend yield of 3.6%. Gaming and Leisure Properties pays out 86.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Liberty Property Trust pays out 61.8% of its earnings in the form of a dividend. Gaming and Leisure Properties has raised its dividend for 4 consecutive years and Liberty Property Trust has raised its dividend for 4 consecutive years.

Volatility and Risk

Gaming and Leisure Properties has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Liberty Property Trust has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

Valuation & Earnings

This table compares Gaming and Leisure Properties and Liberty Property Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gaming and Leisure Properties $971.31 million 7.62 $380.59 million $3.15 10.97
Liberty Property Trust $719.78 million 9.03 $282.34 million $2.59 16.97

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

Profitability

This table compares Gaming and Leisure Properties and Liberty Property Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gaming and Leisure Properties 38.95% 16.10% 5.15%
Liberty Property Trust 59.89% 6.68% 3.28%

Analyst Ratings

This is a breakdown of current recommendations for Gaming and Leisure Properties and Liberty Property Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gaming and Leisure Properties 1 3 6 0 2.50
Liberty Property Trust 0 4 2 0 2.33

Gaming and Leisure Properties presently has a consensus target price of $39.60, indicating a potential upside of 14.62%. Liberty Property Trust has a consensus target price of $44.40, indicating a potential upside of 1.00%. Given Gaming and Leisure Properties’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Gaming and Leisure Properties is more favorable than Liberty Property Trust.

Insider and Institutional Ownership

87.1% of Gaming and Leisure Properties shares are held by institutional investors. Comparatively, 91.2% of Liberty Property Trust shares are held by institutional investors. 5.9% of Gaming and Leisure Properties shares are held by insiders. Comparatively, 1.2% of Liberty Property Trust 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.

Summary

Gaming and Leisure Properties beats Liberty Property Trust on 11 of the 16 factors compared between the two stocks.

Gaming and Leisure Properties Company Profile

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.

Liberty Property Trust Company Profile

Liberty Property Trust (NYSE:LPT) is a leader in commercial real estate, serving customers in the United States and United Kingdom, through the development, acquisition, ownership and management of industrial and office properties. Liberty's 103.5 million square foot operating portfolio provides productive work environments for 1,200 tenants.

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