Granite Real Estate Inc. Staple (NYSE:GRP.U) & Generation Income Properties (NASDAQ:GIPR) Financial Analysis

Granite Real Estate Inc. Staple (NYSE:GRP.U) and Generation Income Properties (NASDAQ:GIPR) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of current ratings for Granite Real Estate Inc. Staple and Generation Income Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Real Estate Inc. Staple	0	0	0	0	N/A
Generation Income Properties	0	1	0	0	2.00

Generation Income Properties has a consensus target price of $5.00, suggesting a potential upside of 65.02%. Given Generation Income Properties’ higher possible upside, analysts plainly believe Generation Income Properties is more favorable than Granite Real Estate Inc. Staple.

Dividends

Granite Real Estate Inc. Staple pays an annual dividend of $2.26 per share and has a dividend yield of 4.3%. Generation Income Properties pays an annual dividend of $0.47 per share and has a dividend yield of 15.5%. Granite Real Estate Inc. Staple pays out 89.7% 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 -18.3% of its earnings in the form of a dividend. Generation Income Properties has raised its dividend for 1 consecutive years. Generation Income Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Granite Real Estate Inc. Staple and Generation Income Properties’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Real Estate Inc. Staple	$386.07 million	8.63	$101.24 million	$2.52	21.08
Generation Income Properties	$7.63 million	2.15	-$5.72 million	($2.57)	-1.18

Granite Real Estate Inc. Staple has higher revenue and earnings than Generation Income Properties. Generation Income Properties is trading at a lower price-to-earnings ratio than Granite Real Estate Inc. Staple, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

57.1% of Granite Real Estate Inc. Staple shares are owned by institutional investors. Comparatively, 20.7% of Generation Income Properties shares are owned by institutional investors. 0.3% of Granite Real Estate Inc. Staple shares are owned by insiders. Comparatively, 11.5% of Generation Income Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Granite Real Estate Inc. Staple and Generation Income Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Real Estate Inc. Staple	40.76%	4.03%	2.36%
Generation Income Properties	-82.77%	-92.11%	-7.48%

Volatility and Risk

Granite Real Estate Inc. Staple has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Generation Income Properties has a beta of -0.09, suggesting that its stock price is 109% less volatile than the S&P 500.

Summary

Granite Real Estate Inc. Staple beats Generation Income Properties on 9 of the 14 factors compared between the two stocks.

About Granite Real Estate Inc. Staple

Granite Real Estate Investment Trust is engaged in the ownership and management of predominantly industrial properties in Canada, the United States, Mexico and Europe. The Company owns and manages rental income properties. Its services include sourcing and real estate acquisition, site development, assisting with government approvals and re-zoning to specific uses, build-to-suit construction, property renovation, project management and long-term leasing. Granite Real Estate Investment Trust, formerly known as Granite Real Estate Inc., is based in Toronto, Canada.

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.