Analyzing Essential Properties Realty Trust (NYSE:EPRT) and Generation Income Properties (NASDAQ:GIPR)

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

Profitability

This table compares Generation Income Properties and Essential Properties Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Generation Income Properties	-69.39%	N/A	-6.81%
Essential Properties Realty Trust	43.51%	6.34%	3.81%

Institutional and Insider Ownership

20.7% of Generation Income Properties shares are owned by institutional investors. Comparatively, 97.0% of Essential Properties Realty Trust shares are owned by institutional investors. 6.2% of Generation Income Properties shares are owned by company insiders. Comparatively, 0.8% of Essential Properties Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Generation Income Properties	$9.74 million	0.12	-$10.34 million	($10.77)	-0.06
Essential Properties Realty Trust	$561.22 million	10.41	$253.01 million	$1.29	20.95

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.

Volatility & Risk

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Generation Income Properties	1	0	0	0	1.00
Essential Properties Realty Trust	0	0	11	1	3.08

Essential Properties Realty Trust has a consensus price target of $36.02, indicating a potential upside of 33.29%. 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.

Summary

Essential Properties Realty Trust beats Generation Income Properties on 14 of the 15 factors compared between the two stocks.

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.

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.