Head-To-Head Review: Global Net Lease (NYSE:GNL) and 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 contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Analyst Ratings

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 price target of $10.25, suggesting a potential upside of 11.90%. Given Global Net Lease’s stronger consensus rating and higher possible upside, analysts clearly believe Global Net Lease is more favorable than Generation Income Properties.

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%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Net Lease	$495.29 million	3.90	-$225.46 million	($0.28)	-32.71
Generation Income Properties	$9.74 million	0.08	-$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.

Volatility & Risk

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

Institutional and Insider Ownership

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

Summary

Global Net Lease beats Generation Income Properties on 11 of the 15 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.