Generation Income Properties (NASDAQ:GIPR – Get Free Report) and Global Net Lease (NYSE:GNL – Get Free Report) are both small-cap real estate companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Volatility and Risk
Generation Income Properties has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500. Comparatively, Global Net Lease has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.
Institutional & Insider Ownership
20.7% of Generation Income Properties shares are owned by institutional investors. Comparatively, 61.2% of Global Net Lease shares are owned by institutional investors. 6.2% of Generation Income Properties shares are owned by insiders. Comparatively, 0.6% of Global Net Lease shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Generation Income Properties | $9.74 million | 0.07 | -$10.34 million | ($10.77) | -0.03 |
| Global Net Lease | $495.29 million | 3.89 | -$225.46 million | ($0.28) | -32.62 |
Generation Income Properties has higher earnings, but lower revenue than Global Net Lease. Global Net Lease is trading at a lower price-to-earnings ratio than Generation Income Properties, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Generation Income Properties and Global Net Lease, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Generation Income Properties | 1 | 0 | 0 | 0 | 1.00 |
| Global Net Lease | 0 | 1 | 3 | 1 | 3.00 |
Global Net Lease has a consensus target price of $10.25, indicating a potential upside of 12.21%. Given Global Net Lease’s stronger consensus rating and higher probable upside, analysts clearly believe Global Net Lease is more favorable than Generation Income Properties.
Profitability
This table compares Generation Income Properties and Global Net Lease’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Generation Income Properties | -69.39% | N/A | -6.81% |
| Global Net Lease | -2.94% | -1.00% | -0.37% |
Summary
Global Net Lease beats Generation Income Properties on 11 of the 15 factors compared between the two stocks.
About Generation Income Properties
Generation Income Properties, Inc., located in Tampa, Florida, is an internally managed real estate investment trust formed to acquire and own, directly and jointly, real estate investments focused on retail, office, and industrial net lease properties in densely populated submarkets.
About Global Net Lease
Global Net Lease, Inc. (NYSE: GNL) is a publicly traded real estate investment trust listed on the NYSE. The firm focused on acquiring a diversified global portfolio of commercial properties, with an emphasis on sale-leaseback transactions involving single tenant, mission critical income producing net-leased assets across the United States, Western and Northern Europe.
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