Invesco Mortgage Capital (NYSE:IVR) versus Generation Income Properties (NASDAQ:GIPR) Financial Review

Invesco Mortgage Capital (NYSE:IVR) and Generation Income Properties (NASDAQ:GIPR) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Institutional and Insider Ownership

40.5% of Invesco Mortgage Capital shares are owned by institutional investors. Comparatively, 20.7% of Generation Income Properties shares are owned by institutional investors. 0.2% of Invesco Mortgage Capital shares are owned by insiders. Comparatively, 5.6% of Generation Income Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Invesco Mortgage Capital has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500. Comparatively, Generation Income Properties has a beta of -0.05, suggesting that its share price is 105% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Invesco Mortgage Capital and Generation Income Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invesco Mortgage Capital	1	3	0	0	1.75
Generation Income Properties	1	0	0	0	1.00

Invesco Mortgage Capital presently has a consensus price target of $7.50, suggesting a potential downside of 1.33%. Given Invesco Mortgage Capital’s stronger consensus rating and higher possible upside, analysts plainly believe Invesco Mortgage Capital is more favorable than Generation Income Properties.

Profitability

This table compares Invesco Mortgage Capital and Generation Income Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invesco Mortgage Capital	13.77%	30.04%	2.91%
Generation Income Properties	-105.40%	-247.43%	-8.66%

Valuation and Earnings

This table compares Invesco Mortgage Capital 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
Invesco Mortgage Capital	$72.30 million	7.46	$59.88 million	$0.51	14.90
Generation Income Properties	$9.76 million	0.57	-$8.35 million	($1.90)	-0.54

Invesco Mortgage Capital has higher revenue and earnings than Generation Income Properties. Generation Income Properties is trading at a lower price-to-earnings ratio than Invesco Mortgage Capital, indicating that it is currently the more affordable of the two stocks.

Summary

Invesco Mortgage Capital beats Generation Income Properties on 12 of the 13 factors compared between the two stocks.

About Invesco Mortgage Capital

Invesco Mortgage Capital Inc. operates as a real estate investment trust (REIT) that invests, finances, and manages mortgage-backed securities and other mortgage-related assets in the United States. It invests in residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS) that are guaranteed by a U.S. government agency or federally chartered corporation; RMBS and CMBS that are not issued or guaranteed by the United States government agency or federally chartered corporation; the United States treasury securities; real estate-related financing arrangements; to-be-announced securities forward contracts to purchase RMBS; and commercial mortgage loans. It has elected to be taxed as a REIT and would be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.

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.