Gaming and Leisure Properties (GLPI) vs. FelCor Lodging Trust (FCH) Financial Analysis

Gaming and Leisure Properties (NASDAQ: GLPI) and FelCor Lodging Trust (NYSE:FCH) are both financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Insider & Institutional Ownership

92.1% of Gaming and Leisure Properties shares are held by institutional investors. Comparatively, 78.8% of FelCor Lodging Trust shares are held by institutional investors. 5.9% of Gaming and Leisure Properties shares are held by insiders. Comparatively, 3.3% of FelCor Lodging Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Gaming and Leisure Properties 39.31% 17.37% 5.83%
FelCor Lodging Trust -0.66% N/A -0.35%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Gaming and Leisure Properties and FelCor Lodging Trust, 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
FelCor Lodging Trust 0 2 0 0 2.00

Gaming and Leisure Properties currently has a consensus price target of $39.80, suggesting a potential upside of 11.33%. FelCor Lodging Trust has a consensus price target of $7.00, suggesting a potential downside of 4.11%. Given Gaming and Leisure Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Gaming and Leisure Properties is more favorable than FelCor Lodging Trust.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gaming and Leisure Properties $828.26 million 9.18 $289.30 million $1.80 19.86
FelCor Lodging Trust N/A N/A N/A ($0.47) -15.53

Gaming and Leisure Properties has higher revenue and earnings than FelCor Lodging Trust. FelCor Lodging Trust 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.

Risk and Volatility

Gaming and Leisure Properties has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, FelCor Lodging Trust has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500.

Dividends

Gaming and Leisure Properties pays an annual dividend of $2.52 per share and has a dividend yield of 7.0%. FelCor Lodging Trust pays an annual dividend of $0.24 per share and has a dividend yield of 3.3%. Gaming and Leisure Properties pays out 140.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. FelCor Lodging Trust pays out -51.1% of its earnings in the form of a dividend. 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.

Summary

Gaming and Leisure Properties beats FelCor Lodging Trust on 12 of the 14 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.

FelCor Lodging Trust Company Profile

FelCor Lodging Trust Incorporated is a real estate investment trust (REIT). The Company, through its subsidiary, FelCor Lodging Limited Partnership, held ownership interests in 39 hotels with 11,500 rooms, as of December 31, 2016. The Company sells, acquires, rebrands and redevelops hotels. As of December 31, 2016, the Company’s hotels were located in 14 states of the United States. The Company holds a portfolio of hotels managed by Hilton Worldwide (Hilton); Wyndham Worldwide (Wyndham); Marriott International Inc. (Marriott); InterContinental Hotels Group (IHG); AccorHotels Group, Highgate Hotels (Highgate), SBE and Aimbridge Hospitality. The Company’s hotels include Embassy Suites Atlanta-Buckhead; DoubleTree Suites by Hilton Austin; Embassy Suites Birmingham; The Fairmont Copley Plaza, Boston; Wyndham Boston Beacon Hill; Embassy Suites Boston-Marlborough, and Sheraton Burlington Hotel & Conference Center.

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