Gaming and Leisure Properties (GLPI) & Kimco Realty (KIM) Head to Head Comparison

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

Insider and Institutional Ownership

86.2% of Kimco Realty shares are held by institutional investors. Comparatively, 87.2% of Gaming and Leisure Properties shares are held by institutional investors. 2.9% of Kimco Realty shares are held by company insiders. Comparatively, 5.9% 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 company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Kimco Realty and Gaming and Leisure Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kimco Realty 1 11 3 0 2.13
Gaming and Leisure Properties 1 3 7 0 2.55

Kimco Realty currently has a consensus price target of $18.15, suggesting a potential upside of 22.58%. Gaming and Leisure Properties has a consensus price target of $39.56, suggesting a potential upside of 16.00%. Given Kimco Realty’s higher possible upside, equities research analysts clearly believe Kimco Realty is more favorable than Gaming and Leisure Properties.

Volatility and Risk

Kimco Realty has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Gaming and Leisure Properties has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Dividends

Kimco Realty pays an annual dividend of $1.12 per share and has a dividend yield of 7.6%. Gaming and Leisure Properties pays an annual dividend of $2.52 per share and has a dividend yield of 7.4%. Kimco Realty pays out 72.3% of its earnings in the form of a dividend. Gaming and Leisure Properties pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kimco Realty has increased its dividend for 8 consecutive years and Gaming and Leisure Properties has increased its dividend for 3 consecutive years. Kimco Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Kimco Realty 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
Kimco Realty $1.20 billion 5.20 $426.07 million $1.55 9.55
Gaming and Leisure Properties $971.31 million 7.50 $380.59 million $3.15 10.83

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

Profitability

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

Net Margins Return on Equity Return on Assets
Kimco Realty 42.68% 9.40% 4.47%
Gaming and Leisure Properties 38.54% 15.56% 5.21%

Summary

Gaming and Leisure Properties beats Kimco Realty on 10 of the 17 factors compared between the two stocks.

Kimco Realty Company Profile

Kimco Realty Corp. (NYSE: KIM) is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that is one of North America's largest publicly traded owners and operators of open-air shopping centers. As of June 30, 2018, the company owned interests in 460 U.S. shopping centers comprising 79 million square feet of leasable space primarily concentrated in the top major metropolitan markets. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for 60 years.

Gaming and Leisure Properties Company Profile

GLPI is engaged in the business of acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements, pursuant to which the tenant is responsible for all facility maintenance, insurance required in connection with the leased properties and the business conducted on the leased properties, taxes levied on or with respect to the leased properties and all utilities and other services necessary or appropriate for the leased properties and the business conducted on the leased properties. GLPI expects to grow its portfolio by pursuing opportunities to acquire additional gaming facilities to lease to gaming operators. GLPI also intends to diversify its portfolio over time, including by acquiring properties outside the gaming industry to lease to third parties. GLPI elected to be taxed as a REIT for United States federal income tax purposes commencing with the 2014 taxable year and is the first gaming-focused REIT in North America.

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