Gaming and Leisure Properties (NASDAQ:GLPI) vs. Extra Space Storage (NYSE:EXR) Critical Analysis

Extra Space Storage (NYSE:EXR) and Gaming and Leisure Properties (NASDAQ:GLPI) are both large-cap real estate companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Volatility and Risk

Extra Space Storage has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Gaming and Leisure Properties has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.

Profitability

This table compares Extra Space Storage and Gaming and Leisure Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Extra Space Storage	27.80%	6.70%	3.27%
Gaming and Leisure Properties	59.01%	19.17%	7.29%

Dividends

Extra Space Storage pays an annual dividend of $6.48 per share and has a dividend yield of 4.9%. Gaming and Leisure Properties pays an annual dividend of $3.28 per share and has a dividend yield of 8.5%. Extra Space Storage pays out 143.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Extra Space Storage has raised its dividend for 1 consecutive years and Gaming and Leisure Properties has raised 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.

Analyst Recommendations

This is a summary of current recommendations and price targets for Extra Space Storage and Gaming and Leisure Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extra Space Storage	0	9	7	0	2.44
Gaming and Leisure Properties	0	7	5	0	2.42

Extra Space Storage presently has a consensus target price of $149.47, suggesting a potential upside of 13.07%. Gaming and Leisure Properties has a consensus target price of $47.73, suggesting a potential upside of 23.87%. Given Gaming and Leisure Properties’ higher probable upside, analysts clearly believe Gaming and Leisure Properties is more favorable than Extra Space Storage.

Valuation & Earnings

This table compares Extra Space Storage and Gaming and Leisure Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Extra Space Storage	$3.45 billion	8.10	$974.00 million	$4.53	29.18
Gaming and Leisure Properties	$1.59 billion	7.03	$825.11 million	$3.41	11.30

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

Insider & Institutional Ownership

99.1% of Extra Space Storage shares are owned by institutional investors. Comparatively, 91.1% of Gaming and Leisure Properties shares are owned by institutional investors. 1.0% of Extra Space Storage shares are owned by insiders. Comparatively, 4.1% of Gaming and Leisure Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Extra Space Storage beats Gaming and Leisure Properties on 9 of the 17 factors compared between the two stocks.

About Extra Space Storage

Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of December 31, 2023, the Company owned and/or operated 3,714 self-storage stores in 42 states and Washington, D.C. The Company's stores comprise approximately 2.6 million units and approximately 283.0 million square feet of rentable space operating under the Extra Space, Life Storage and Storage Express brands. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. It is the largest operator of self-storage properties in the United States.

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.