Reviewing Generation Income Properties (NASDAQ:GIPR) & 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 investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

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%

Volatility & Risk

Essential Properties Realty Trust has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Generation Income Properties has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.

Dividends

Essential Properties Realty Trust pays an annual dividend of $1.28 per share and has a dividend yield of 5.0%. Generation Income Properties pays an annual dividend of $0.46 per share and has a dividend yield of 113.7%. Essential Properties Realty Trust pays out 99.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Generation Income Properties pays out -4.3% of its earnings in the form of a dividend. Essential Properties Realty Trust has raised its dividend for 6 consecutive years. Generation Income Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent recommendations for Essential Properties Realty Trust and Generation Income Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Essential Properties Realty Trust	0	1	9	1	3.00
Generation Income Properties	1	0	0	0	1.00

Essential Properties Realty Trust currently has a consensus price target of $35.12, indicating a potential upside of 36.14%. Given Essential Properties Realty Trust’s stronger consensus rating and higher possible upside, research analysts plainly believe Essential Properties Realty Trust is more favorable than Generation Income Properties.

Institutional & Insider Ownership

97.0% of Essential Properties Realty Trust shares are held by institutional investors. Comparatively, 20.7% of Generation Income Properties shares are held by institutional investors. 0.8% of Essential Properties Realty Trust 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 stock is poised for long-term growth.

Valuation and Earnings

This table compares Essential Properties Realty Trust and Generation Income Properties”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Essential Properties Realty Trust	$561.22 million	9.94	$253.01 million	$1.29	20.00
Generation Income Properties	$9.22 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.

Summary

Essential Properties Realty Trust beats Generation Income Properties on 15 of the 18 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.