Head-To-Head Contrast: Gaming and Leisure Properties (NASDAQ:GLPI) & CubeSmart (NYSE:CUBE)

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

Institutional & Insider Ownership

91.1% of Gaming and Leisure Properties shares are held by institutional investors. Comparatively, 97.6% of CubeSmart shares are held by institutional investors. 4.3% of Gaming and Leisure Properties shares are held by company insiders. Comparatively, 1.8% of CubeSmart shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Gaming and Leisure Properties and CubeSmart”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gaming and Leisure Properties	$1.59 billion	8.40	$825.11 million	$2.91	16.26
CubeSmart	$1.12 billion	8.04	$333.78 million	$1.45	27.30

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Gaming and Leisure Properties and CubeSmart, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gaming and Leisure Properties	0	6	6	0	2.50
CubeSmart	0	10	6	0	2.38

Gaming and Leisure Properties presently has a consensus price target of $52.55, suggesting a potential upside of 11.07%. CubeSmart has a consensus price target of $43.57, suggesting a potential upside of 10.06%. Given Gaming and Leisure Properties’ stronger consensus rating and higher probable upside, research analysts clearly believe Gaming and Leisure Properties is more favorable than CubeSmart.

Volatility & Risk

Gaming and Leisure Properties has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, CubeSmart has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gaming and Leisure Properties	55.56%	18.12%	7.07%
CubeSmart	29.72%	11.84%	4.97%

Dividends

Gaming and Leisure Properties pays an annual dividend of $3.12 per share and has a dividend yield of 6.6%. CubeSmart pays an annual dividend of $2.12 per share and has a dividend yield of 5.4%. Gaming and Leisure Properties pays out 107.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CubeSmart pays out 146.2% 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 increased its dividend for 2 consecutive years and CubeSmart has increased its dividend for 16 consecutive years. Gaming and Leisure Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Gaming and Leisure Properties beats CubeSmart on 12 of the 16 factors compared between the two stocks.

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.

About CubeSmart

CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and, in most locations, climate-controlled storage space for residential and commercial customers. According to the 2023 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.