Head to Head Review: Alexander’s (NYSE:ALX) vs. Gaming and Leisure Properties (NASDAQ:GLPI)

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

Volatility & Risk

Alexander’s has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Gaming and Leisure Properties has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Earnings & Valuation

This table compares Alexander’s and Gaming and Leisure Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexander’s	$226.37 million	4.82	$43.44 million	$8.46	25.27
Gaming and Leisure Properties	$1.53 billion	9.04	$734.28 million	$2.87	17.55

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

Institutional & Insider Ownership

32.0% of Alexander’s shares are held by institutional investors. Comparatively, 91.1% of Gaming and Leisure Properties shares are held by institutional investors. 26.3% of Alexander’s shares are held by company insiders. Comparatively, 4.4% of Gaming and Leisure Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Alexander’s and Gaming and Leisure Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexander’s	1	0	0	0	1.00
Gaming and Leisure Properties	0	5	9	0	2.64

Alexander’s presently has a consensus price target of $125.00, suggesting a potential downside of 41.54%. Gaming and Leisure Properties has a consensus price target of $53.96, suggesting a potential upside of 7.17%. Given Gaming and Leisure Properties’ stronger consensus rating and higher probable upside, analysts plainly believe Gaming and Leisure Properties is more favorable than Alexander’s.

Dividends

Alexander’s pays an annual dividend of $18.00 per share and has a dividend yield of 8.4%. Gaming and Leisure Properties pays an annual dividend of $3.04 per share and has a dividend yield of 6.0%. Alexander’s pays out 212.8% 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 pays out 105.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alexander’s	19.19%	21.45%	3.12%
Gaming and Leisure Properties	51.65%	17.41%	6.55%

Summary

Gaming and Leisure Properties beats Alexander’s on 11 of the 16 factors compared between the two stocks.

About Alexander’s

Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (REIT), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties. All references to we, us, our, Company and Alexander’s refer to Alexander’s, Inc. and its consolidated subsidiaries. We are managed by, and our properties are leased and developed by, Vornado Realty Trust (Vornado) (NYSE: VNO). We have five properties in New York City.

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.