National Storage Affiliates Trust (NYSE:NSA) and Gaming and Leisure Properties (NASDAQ:GLPI) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.
Institutional & Insider Ownership
86.3% of National Storage Affiliates Trust shares are owned by institutional investors. Comparatively, 83.8% of Gaming and Leisure Properties shares are owned by institutional investors. 12.2% of National Storage Affiliates Trust shares are owned by company insiders. Comparatively, 5.8% of Gaming and Leisure Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares National Storage Affiliates Trust and Gaming and Leisure Properties' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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National Storage Affiliates Trust | 10.42% | 3.72% | 1.35% |
Gaming and Leisure Properties | 39.46% | 21.46% | 5.20% |
Risk and Volatility
National Storage Affiliates Trust has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, Gaming and Leisure Properties has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings for National Storage Affiliates Trust and Gaming and Leisure Properties, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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National Storage Affiliates Trust | 0 | 4 | 4 | 0 | 2.50 |
Gaming and Leisure Properties | 0 | 0 | 10 | 1 | 3.09 |
National Storage Affiliates Trust presently has a consensus price target of $34.2222, indicating a potential downside of 10.06%. Gaming and Leisure Properties has a consensus price target of $43.6250, indicating a potential upside of 1.08%. Given Gaming and Leisure Properties' stronger consensus rating and higher probable upside, analysts plainly believe Gaming and Leisure Properties is more favorable than National Storage Affiliates Trust.
Dividends
National Storage Affiliates Trust pays an annual dividend of $1.40 per share and has a dividend yield of 3.7%. Gaming and Leisure Properties pays an annual dividend of $2.40 per share and has a dividend yield of 5.6%. National Storage Affiliates Trust pays out 90.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gaming and Leisure Properties pays out 69.8% of its earnings in the form of a dividend. National Storage Affiliates Trust has raised its dividend for 6 consecutive years and Gaming and Leisure Properties has raised its dividend for 1 consecutive years. Gaming and Leisure Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares National Storage Affiliates Trust and Gaming and Leisure Properties' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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National Storage Affiliates Trust | $387.90 million | 7.00 | $3.98 million | $1.54 | 24.71 |
Gaming and Leisure Properties | $1.15 billion | 8.71 | $390.88 million | $3.44 | 12.55 |
Gaming and Leisure Properties has higher revenue and earnings than National Storage Affiliates Trust. Gaming and Leisure Properties is trading at a lower price-to-earnings ratio than National Storage Affiliates Trust, indicating that it is currently the more affordable of the two stocks.
Summary
Gaming and Leisure Properties beats National Storage Affiliates Trust on 14 of the 18 factors compared between the two stocks.