Generation Income Properties (NASDAQ:GIPR) vs. Saul Centers (NYSE:BFS) Financial Survey

Saul Centers (NYSE:BFS) and Generation Income Properties (NASDAQ:GIPR) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Insider and Institutional Ownership

50.0% of Saul Centers shares are held by institutional investors. Comparatively, 20.7% of Generation Income Properties shares are held by institutional investors. 56.6% of Saul Centers shares are held by insiders. Comparatively, 11.5% 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 company is poised for long-term growth.

Volatility & Risk

Saul Centers has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Generation Income Properties has a beta of -0.12, indicating that its stock price is 112% less volatile than the S&P 500.

Valuation & Earnings

This table compares Saul Centers and Generation Income Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Saul Centers	$264.08 million	3.77	$52.69 million	$1.73	23.99
Generation Income Properties	$9.66 million	1.18	-$5.72 million	($2.57)	-0.82

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

Analyst Ratings

This is a breakdown of recent recommendations for Saul Centers and Generation Income Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Saul Centers	0	0	1	0	3.00
Generation Income Properties	0	1	0	0	2.00

Saul Centers currently has a consensus target price of $45.50, indicating a potential upside of 9.61%. Generation Income Properties has a consensus target price of $5.00, indicating a potential upside of 138.10%. Given Generation Income Properties’ higher possible upside, analysts plainly believe Generation Income Properties is more favorable than Saul Centers.

Profitability

This table compares Saul Centers and Generation Income Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Saul Centers	20.49%	16.61%	2.69%
Generation Income Properties	-89.09%	-106.37%	-8.03%

Dividends

Saul Centers pays an annual dividend of $2.36 per share and has a dividend yield of 5.7%. Generation Income Properties pays an annual dividend of $0.46 per share and has a dividend yield of 21.9%. Saul Centers pays out 136.4% 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 -17.9% of its earnings in the form of a dividend. Generation Income Properties has increased 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.

Summary

Saul Centers beats Generation Income Properties on 13 of the 17 factors compared between the two stocks.

About Saul Centers

Saul Centers is a self-managed, self-administered equity REIT headquartered in Bethesda, Maryland. Saul Centers currently operates and manages a real estate portfolio comprised of 61 properties that includes (a) 57 community and neighborhood Shopping Centers and Mixed-Use properties with approximately 9.8 million square feet of leasable area and (b) four land and development properties. Over 85% of the Company’s property operating income is generated from properties in the metropolitan Washington, DC/Baltimore area.

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.