SBA Communications (NASDAQ:SBAC – Get Free Report) and Gaming and Leisure Properties (NASDAQ:GLPI – Get Free Report) are both large-cap real estate companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.
Insider & Institutional Ownership
97.3% of SBA Communications shares are held by institutional investors. Comparatively, 91.1% of Gaming and Leisure Properties shares are held by institutional investors. 9.5% of SBA Communications shares are held by company insiders. Comparatively, 4.1% of Gaming and Leisure Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares SBA Communications and Gaming and Leisure Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SBA Communications | 34.51% | -20.67% | 8.56% |
| Gaming and Leisure Properties | 59.01% | 19.17% | 7.29% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SBA Communications | 0 | 9 | 7 | 0 | 2.44 |
| Gaming and Leisure Properties | 0 | 6 | 6 | 0 | 2.50 |
SBA Communications presently has a consensus price target of $225.53, suggesting a potential upside of 23.20%. Gaming and Leisure Properties has a consensus price target of $49.27, suggesting a potential upside of 20.03%. Given SBA Communications’ higher probable upside, analysts plainly believe SBA Communications is more favorable than Gaming and Leisure Properties.
Valuation & Earnings
This table compares SBA Communications and Gaming and Leisure Properties”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SBA Communications | $2.82 billion | 6.90 | $1.05 billion | $9.28 | 19.73 |
| Gaming and Leisure Properties | $1.59 billion | 7.49 | $825.11 million | $3.41 | 12.04 |
SBA Communications has higher revenue and earnings than Gaming and Leisure Properties. Gaming and Leisure Properties is trading at a lower price-to-earnings ratio than SBA Communications, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
SBA Communications has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Gaming and Leisure Properties has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.
Dividends
SBA Communications pays an annual dividend of $5.00 per share and has a dividend yield of 2.7%. Gaming and Leisure Properties pays an annual dividend of $3.28 per share and has a dividend yield of 8.0%. SBA Communications pays out 53.9% of its earnings in the form of a dividend. 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. SBA Communications has increased its dividend for 6 consecutive years and Gaming and Leisure Properties has increased its dividend for 2 consecutive years.
Summary
SBA Communications beats Gaming and Leisure Properties on 12 of the 17 factors compared between the two stocks.
About SBA Communications
SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. With a portfolio of more than 39,000 communications sites throughout the Americas, Africa and in Asia, SBA is listed on NASDAQ under the symbol SBAC. Our organization is part of the S&P 500 and is one of the top Real Estate Investment Trusts (REITs) by market capitalization.
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.
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