Head to Head Comparison: Generation Income Properties (NASDAQ:GIPR) and Essential Properties Realty Trust (NYSE:EPRT)
by Kim Johansen · The Markets DailyEssential Properties Realty Trust (NYSE:EPRT – Get Free Report) and Generation Income Properties (NASDAQ:GIPR – Get Free Report) are both real estate companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.
Profitability
This table compares Essential Properties Realty Trust and Generation Income Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Essential Properties Realty Trust | 43.51% | 6.34% | 3.81% |
| Generation Income Properties | -69.39% | N/A | -6.81% |
Earnings and Valuation
This table compares Essential Properties Realty Trust and Generation Income Properties”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Essential Properties Realty Trust | $561.22 million | 10.68 | $253.01 million | $1.29 | 21.49 |
| Generation Income Properties | $9.74 million | 0.06 | -$10.34 million | ($10.77) | -0.03 |
Essential Properties Realty Trust has higher revenue and earnings than Generation Income Properties. Generation Income Properties is trading at a lower price-to-earnings ratio than Essential Properties Realty Trust, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Essential Properties Realty Trust has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Generation Income Properties has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500.
Institutional and Insider Ownership
97.0% of Essential Properties Realty Trust shares are owned by institutional investors. Comparatively, 20.7% of Generation Income Properties shares are owned by institutional investors. 0.8% of Essential Properties Realty Trust shares are owned by insiders. Comparatively, 6.2% of Generation Income Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Essential Properties Realty Trust and Generation Income Properties, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Essential Properties Realty Trust | 0 | 0 | 11 | 1 | 3.08 |
| Generation Income Properties | 1 | 0 | 0 | 0 | 1.00 |
Essential Properties Realty Trust presently has a consensus target price of $36.20, suggesting a potential upside of 30.58%. Given Essential Properties Realty Trust’s stronger consensus rating and higher possible upside, research analysts clearly believe Essential Properties Realty Trust is more favorable than Generation Income Properties.
Summary
Essential Properties Realty Trust beats Generation Income Properties on 14 of the 15 factors compared between the two stocks.
About Essential Properties Realty Trust
Essential Properties Realty Trust, Inc., a real estate company, acquires, owns, and manages single-tenant properties in the United States. The company leases its properties to middle-market companies, such as restaurants, car washes, automotive services, medical and dental services, convenience stores, equipment rental, entertainment, early childhood education, grocery, and health and fitness on a long-term basis. As of December 31, 2021, it had a portfolio of 1, 451 properties. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2016 and is headquartered in Princeton, New Jersey.
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.