Financial Analysis: Global Net Lease (NYSE:GNL) & Generation Income Properties (NASDAQ:GIPR)

Global Net Lease (NYSE:GNL) and Generation Income Properties (NASDAQ:GIPR) are both small-cap real estate companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Insider & Institutional Ownership

61.2% of Global Net Lease shares are held by institutional investors. Comparatively, 20.7% of Generation Income Properties shares are held by institutional investors. 0.6% of Global Net Lease shares are held by insiders. Comparatively, 6.2% of Generation Income Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Global Net Lease has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Generation Income Properties has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.

Profitability

This table compares Global Net Lease and Generation Income Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Net Lease	-2.94%	-1.00%	-0.37%
Generation Income Properties	-69.39%	N/A	-6.81%

Dividends

Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 8.3%. Generation Income Properties pays an annual dividend of $0.46 per share and has a dividend yield of 102.4%. Global Net Lease pays out -271.4% of its earnings in the form of a dividend. Generation Income Properties pays out -4.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a breakdown of recent ratings for Global Net Lease and Generation Income Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Net Lease	0	1	3	1	3.00
Generation Income Properties	1	0	0	0	1.00

Global Net Lease currently has a consensus target price of $10.25, indicating a potential upside of 12.32%. Given Global Net Lease’s stronger consensus rating and higher possible upside, research analysts plainly believe Global Net Lease is more favorable than Generation Income Properties.

Earnings and Valuation

This table compares Global Net Lease and Generation Income Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Net Lease	$495.29 million	3.89	-$225.46 million	($0.28)	-32.59
Generation Income Properties	$9.22 million	0.09	-$10.34 million	($10.77)	-0.04

Generation Income Properties has lower revenue, but higher earnings 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.

Summary

Global Net Lease beats Generation Income Properties on 12 of the 17 factors compared between the two stocks.

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.

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.