Critical Analysis: Generation Income Properties (NASDAQ:GIPR) vs. Essential Properties Realty Trust (NYSE:EPRT)

Essential Properties Realty Trust (NYSE:EPRT) and Generation Income Properties (NASDAQ:GIPR) are both real estate companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets 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 price target of $36.20, suggesting a potential upside of 21.18%. Given Essential Properties Realty Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Essential Properties Realty Trust is more favorable than Generation Income Properties.

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%

Valuation & Earnings

This table compares Essential Properties Realty Trust and Generation Income Properties”s 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	11.51	$253.01 million	$1.29	23.16
Generation Income Properties	$9.74 million	0.08	-$10.34 million	($10.77)	-0.04

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.

Insider and Institutional 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 company insiders. Comparatively, 6.2% of Generation Income Properties shares are owned by company 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.

Risk & Volatility

Essential Properties Realty Trust has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Generation Income Properties has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500.

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.