Home One community Critical Analysis: AvalonBay Communities (NYSE: AVB) and Gaming and Leisure Properties (NASDAQ: GLPI)

Critical Analysis: AvalonBay Communities (NYSE: AVB) and Gaming and Leisure Properties (NASDAQ: GLPI)

0

AvalonBay Communities (NYSE:AVB – Get Rating) and Gaming and Leisure Properties (NASDAQ:GLPI – Get Rating) are both large-cap finance companies, but which is the best investment? We will compare the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Dividends

AvalonBay Communities pays an annual dividend of $6.36 per share and has a dividend yield of 3.1%. Gaming and leisure properties pay an annual dividend of $2.76 per share and have a dividend yield of 5.9%. AvalonBay Communities pays 79.1% of its earnings as a dividend, suggesting that it may not have enough earnings to cover its dividend payment in the future. Gaming and Leisure Properties pays 125.5% of its profits as a dividend, suggesting it may not have enough profits to cover its dividend payment in the future. Games and Leisure Real Estate increased its dividend for two consecutive years. Gaming and leisure properties are clearly the best dividend-paying stocks, given their higher yield and longer track record of dividend growth.

Benefits and evaluation

This table compares the revenue, earnings per share and valuation of AvalonBay Communities and Gaming and Leisure Properties.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
AvalonBay Communities $2.29 billion 12.63 $1.00 billion $8.04 25.77
Games and leisure properties $1.22 billion 9.53 $534.09 million $2.20 21.29

AvalonBay Communities has higher revenues and profits than gaming and recreation properties. The gambling and leisure properties are trading at a lower price-to-earnings ratio than AvalonBay Communities, indicating that it is currently the more affordable of the two stocks.

Volatility and risk

AvalonBay Communities has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. In comparison, Gaming and Leisure Properties has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Profitability

This table compares the net margins, return on equity and return on assets of AvalonBay Communities and Gaming and Leisure Properties.

Net margins Return on equity return on assets
AvalonBay Communities 47.68% 10.31% 5.72%
Games and leisure properties 42.79% 16.86% 5.27%

Analyst Recommendations

This is a summary of recent ratings of AvalonBay communities and gaming and leisure properties, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
AvalonBay Communities 0 6 9 0 2.60
Games and leisure properties 1 2 seven 1 2.73

AvalonBay Communities currently has a consensus target price of $258.06, suggesting a potential upside of 25.89%. Gaming and Leisure Properties have a consensus target price of $52.60, suggesting a potential upside of 12.30%. Given AvalonBay Communities’ possible higher upside, analysts clearly believe that AvalonBay Communities is more favorable than gaming and leisure properties.

Institutional and insider ownership

91.0% of the shares of AvalonBay Communities are held by institutional investors. In comparison, 91.4% of Gaming and Leisure real estate shares are held by institutional investors. 0.3% of AvalonBay Communities shares are held by insiders. In comparison, 5.5% of the shares of Real estate for games and leisure are held by insiders. Strong institutional ownership indicates that endowments, large money managers, and hedge funds believe a company is ready for long-term growth.

Summary

AvalonBay Communities beat Gaming and Leisure Properties on 10 of 18 factors compared between the two stocks.

About AvalonBay Communities (Get a rating)

As of December 31, 2020, the Company owned or had a direct or indirect interest in 291 apartment communities containing 86,025 apartment homes in 11 states and the District of Columbia, of which 18 communities were in development and one community was in redevelopment. The Company is an equity REIT engaged in the development, redevelopment, acquisition and management of apartment communities in major metropolitan areas of New England, the New York/New York metropolitan area Jersey, Mid-Atlantic, Pacific Northwest, and Northern and Southern California. , as well as in the Company’s expansion markets comprising Southeast Florida and Denver, Colorado (the “Expansion Markets”).

About Play and Leisure Properties (Get a rating)

GLPI is engaged in acquiring, financing and owning real estate for lease to gaming operators under triple net lease agreements, under which the tenant is responsible for all maintenance of the facilities, insurance required in connection with the Leased Properties and the activities carried on at the Leased Properties, taxes levied on or in connection with the Leased Properties and all utilities and other services necessary or appropriate for the Leased Properties and the activities carried out on rental properties.



Receive daily news and reviews for AvalonBay communities – Enter your email address below to receive a concise daily summary of breaking news and analyst ratings for the AvalonBay communities and related companies with MarketBeat.com’s FREE daily newsletter.