Summit Hotel Properties (NYSE: INN) and Gaming and Leisure Properties (NASDAQ:GLPIV) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.
Institutional and Insider Ownership
95.3% of Summit Hotel Properties shares are owned by institutional investors. 1.7% of Summit Hotel Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summit Hotel Properties pays an annual dividend of $0.68 per share and has a dividend yield of 4.3%. Gaming and Leisure Properties does not pay a dividend. Summit Hotel Properties pays out 75.6% 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 has raised its dividend for 3 consecutive years.
This table compares Summit Hotel Properties and Gaming and Leisure Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Summit Hotel Properties||21.97%||9.89%||5.83%|
|Gaming and Leisure Properties||39.58%||15.66%||5.27%|
Valuation and Earnings
This table compares Summit Hotel Properties and Gaming and Leisure Properties’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Summit Hotel Properties||$475.70 million||3.50||$154.58 million||$0.90||17.77|
|Gaming and Leisure Properties||N/A||N/A||N/A||N/A||N/A|
Summit Hotel Properties has higher revenue and earnings than Gaming and Leisure Properties.
This is a summary of recent recommendations for Summit Hotel Properties and Gaming and Leisure Properties, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Summit Hotel Properties||1||1||6||0||2.63|
|Gaming and Leisure Properties||0||0||0||0||N/A|
Summit Hotel Properties currently has a consensus price target of $17.43, suggesting a potential upside of 9.00%. Given Summit Hotel Properties’ higher probable upside, equities research analysts plainly believe Summit Hotel Properties is more favorable than Gaming and Leisure Properties.
Summit Hotel Properties beats Gaming and Leisure Properties on 7 of the 11 factors compared between the two stocks.
Summit Hotel Properties Company Profile
Summit Hotel Properties, Inc. is a real estate investment trust (REIT). The Company is focused primarily on owning premium-branded, select-service hotels in the Upscale segment of the United States lodging industry. The Company’s portfolio consists of 79 hotels with a total of 11,590 guestrooms located in 24 states. The Company’s hotels are located in markets, such as business and corporate headquarters, retail centers, airports and tourist attractions. The Company’s portfolio is located in urban and suburban markets. Based on total number of guestrooms, approximately 92% of the Company’s portfolio is positioned in over 50 metropolitan statistical areas (MSAs), and approximately 96% is located within over 100 MSAs. Based on total number of guestrooms, approximately 99% of the Company’s hotels operate under franchise brands owned by Marriott International, Inc., Hilton Worldwide, InterContinental Hotels Group, and an affiliate of Hyatt Hotels Corporation.
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.
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