Contrasting Rayonier (NYSE:RYN) and Gaming and Leisure Properties (NASDAQ:GLPI)

Gaming and Leisure Properties (NASDAQ:GLPI) and Rayonier (NYSE:RYN) are both real estate companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Institutional & Insider Ownership

91.1% of Gaming and Leisure Properties shares are owned by institutional investors. Comparatively, 89.1% of Rayonier shares are owned by institutional investors. 4.1% of Gaming and Leisure Properties shares are owned by insiders. Comparatively, 0.9% of Rayonier shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Gaming and Leisure Properties has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Rayonier has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Valuation & Earnings

This table compares Gaming and Leisure Properties and Rayonier”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gaming and Leisure Properties	$1.66 billion	7.44	$825.11 million	$3.41	12.42
Rayonier	$484.50 million	12.40	$474.38 million	$0.45	44.88

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gaming and Leisure Properties	59.01%	19.17%	7.29%
Rayonier	7.83%	3.49%	2.37%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gaming and Leisure Properties	0	6	6	0	2.50
Rayonier	0	5	0	1	2.33

Gaming and Leisure Properties currently has a consensus target price of $49.27, indicating a potential upside of 16.37%. Rayonier has a consensus target price of $24.80, indicating a potential upside of 22.80%. Given Rayonier’s higher possible upside, analysts plainly believe Rayonier is more favorable than Gaming and Leisure Properties.

Dividends

Gaming and Leisure Properties pays an annual dividend of $3.28 per share and has a dividend yield of 7.7%. Rayonier pays an annual dividend of $1.04 per share and has a dividend yield of 5.1%. Gaming and Leisure Properties pays out 96.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rayonier pays out 231.1% 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 increased its dividend for 2 consecutive years. Gaming and Leisure Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Gaming and Leisure Properties beats Rayonier on 13 of the 18 factors compared between the two stocks.

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.

About Rayonier

Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. As of December 31, 2023, Rayonier owned or leased under long-term agreements approximately 2.7 million acres of timberlands located in the U.S. South (1.85 million acres), U.S. Pacific Northwest (418,000 acres) and New Zealand (421,000 acres).