Reviewing Generation Income Properties (NASDAQ:GIPR) & Empire State Realty Trust (NYSE:ESRT)

Generation Income Properties (NASDAQ:GIPR) and Empire State Realty Trust (NYSE:ESRT) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Generation Income Properties and Empire State Realty Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Generation Income Properties	0	1	0	0	2.00
Empire State Realty Trust	1	0	1	0	2.00

Generation Income Properties currently has a consensus price target of $5.00, indicating a potential upside of 182.49%. Empire State Realty Trust has a consensus price target of $11.50, indicating a potential upside of 19.23%. Given Generation Income Properties’ higher probable upside, analysts clearly believe Generation Income Properties is more favorable than Empire State Realty Trust.

Insider and Institutional Ownership

20.7% of Generation Income Properties shares are held by institutional investors. Comparatively, 67.1% of Empire State Realty Trust shares are held by institutional investors. 5.6% of Generation Income Properties shares are held by company insiders. Comparatively, 14.0% of Empire State Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Generation Income Properties	$7.63 million	1.26	-$5.72 million	($2.50)	-0.71
Empire State Realty Trust	$763.20 million	2.11	$53.24 million	$0.27	35.72

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

Risk and Volatility

Generation Income Properties has a beta of -0.1, suggesting that its share price is 110% less volatile than the S&P 500. Comparatively, Empire State Realty Trust has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Generation Income Properties	-97.27%	-122.61%	-9.33%
Empire State Realty Trust	6.22%	2.73%	1.10%

Summary

Empire State Realty Trust beats Generation Income Properties on 12 of the 13 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 Empire State Realty Trust

Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and operates a portfolio of modernized, amenitized, and well-located office, retail, and multifamily assets. The company is the recognized leader in energy efficiency and indoor environmental quality. ESRT’s flagship Empire State Building – the “World’s Most Famous Building” – includes its Observatory, Tripadvisor’s 2023 Travelers’ Choice Awards: Best of the Best the #1 attraction in the US for two consecutive years. As of September 30, 2023, ESRT’s portfolio is comprised of approximately 8.6 million rentable square feet of office space, 0.7 million rentable square feet of retail space and 727 residential units across three multifamily properties.