Head-To-Head Survey: Generation Income Properties (NASDAQ:GIPR) and W. P. Carey (NYSE:WPC)

Generation Income Properties (NASDAQ:GIPR) and W. P. Carey (NYSE:WPC) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares Generation Income Properties and W. P. Carey’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Generation Income Properties	-81.51%	-53.85%	-6.41%
W. P. Carey	40.68%	7.78%	3.80%

Insider & Institutional Ownership

20.7% of Generation Income Properties shares are held by institutional investors. Comparatively, 73.7% of W. P. Carey shares are held by institutional investors. 11.5% of Generation Income Properties shares are held by company insiders. Comparatively, 1.1% of W. P. Carey shares are held 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 and Volatility

Generation Income Properties has a beta of -0.26, suggesting that its share price is 126% less volatile than the S&P 500. Comparatively, W. P. Carey has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Generation Income Properties and W. P. Carey, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Generation Income Properties	0	1	0	0	2.00
W. P. Carey	2	8	1	0	1.91

Generation Income Properties currently has a consensus target price of $0.00, suggesting a potential downside of 100.00%. W. P. Carey has a consensus target price of $63.36, suggesting a potential upside of 13.19%. Given W. P. Carey’s higher possible upside, analysts plainly believe W. P. Carey is more favorable than Generation Income Properties.

Earnings and Valuation

This table compares Generation Income Properties and W. P. Carey’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Generation Income Properties	$5.43 million	1.81	-$3.24 million	($1.95)	-1.93
W. P. Carey	$1.74 billion	7.03	$708.33 million	$3.30	16.96

W. P. Carey has higher revenue and earnings than Generation Income Properties. Generation Income Properties is trading at a lower price-to-earnings ratio than W. P. Carey, indicating that it is currently the more affordable of the two stocks.

Dividends

Generation Income Properties pays an annual dividend of $0.47 per share and has a dividend yield of 12.5%. W. P. Carey pays an annual dividend of $3.44 per share and has a dividend yield of 6.1%. Generation Income Properties pays out -24.1% of its earnings in the form of a dividend. W. P. Carey pays out 104.2% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

W. P. Carey beats Generation Income Properties on 12 of the 16 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 W. P. Carey

W. P. Carey ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, which includes 1,424 net lease properties covering approximately 173 million square feet and a portfolio of 89 self-storage operating properties as of December 31, 2023. With offices in New York, London, Amsterdam and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse and retail properties located in the U.S. and Northern and Western Europe, under long-term net leases with built-in rent escalations.