Reviewing Broadstone Net Lease (NYSE:BNL) and Gaming and Leisure Properties (NASDAQ:GLPI)

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Broadstone Net Lease and Gaming and Leisure Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadstone Net Lease	1	3	3	1	2.50
Gaming and Leisure Properties	0	5	9	0	2.64

Broadstone Net Lease presently has a consensus price target of $18.67, suggesting a potential upside of 15.88%. Gaming and Leisure Properties has a consensus price target of $54.63, suggesting a potential upside of 14.75%. Given Broadstone Net Lease’s higher possible upside, analysts clearly believe Broadstone Net Lease is more favorable than Gaming and Leisure Properties.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadstone Net Lease	$435.12 million	6.99	$155.48 million	$0.61	26.41
Gaming and Leisure Properties	$1.55 billion	8.44	$734.28 million	$2.81	16.94

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

Insider & Institutional Ownership

89.1% of Broadstone Net Lease shares are held by institutional investors. Comparatively, 91.1% of Gaming and Leisure Properties shares are held by institutional investors. 1.0% of Broadstone Net Lease shares are held by company insiders. Comparatively, 4.3% of Gaming and Leisure Properties shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Broadstone Net Lease and Gaming and Leisure Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Broadstone Net Lease	37.62%	5.10%	3.08%
Gaming and Leisure Properties	51.65%	17.41%	6.55%

Volatility and Risk

Broadstone Net Lease has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Gaming and Leisure Properties has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Dividends

Broadstone Net Lease pays an annual dividend of $1.16 per share and has a dividend yield of 7.2%. Gaming and Leisure Properties pays an annual dividend of $3.04 per share and has a dividend yield of 6.4%. Broadstone Net Lease pays out 190.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Gaming and Leisure Properties pays out 108.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Broadstone Net Lease has raised its dividend for 4 consecutive years and Gaming and Leisure Properties has raised its dividend for 2 consecutive years. Broadstone Net Lease is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Gaming and Leisure Properties beats Broadstone Net Lease on 12 of the 18 factors compared between the two stocks.

About Broadstone Net Lease

Broadstone Net Lease, Inc. (the Corporation) is a Maryland corporation formed on October 18, 2007, that elected to be taxed as a real estate investment trust (REIT) commencing with the taxable year ended December 31, 2008. Broadstone Net Lease, LLC (the Corporation’s operating company, or the OP), is the entity through which the Corporation conducts its business and owns (either directly or through subsidiaries) all of the Corporation’s properties. The Corporation is the sole managing member of the OP. The membership units not owned by the Corporation are referred to as OP Units or non-controlling interests. As the Corporation conducts substantially all of its operations through the OP, it is structured as what is referred to as an umbrella partnership real estate investment trust (UPREIT). The Corporation’s common stock is listed on the New York Stock Exchange under the symbol BNL.

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.