Contrasting Generation Income Properties (NASDAQ:GIPR) & Morguard Real Estate Investment Trust (OTCMKTS:MGRUF)

Generation Income Properties (NASDAQ:GIPR) and Morguard Real Estate Investment Trust (OTCMKTS:MGRUF) are both real estate companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for Generation Income Properties and Morguard Real Estate Investment 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
Morguard Real Estate Investment Trust	0	0	0	0	N/A

Generation Income Properties presently has a consensus price target of $5.00, suggesting a potential upside of 150.00%. Given Generation Income Properties’ higher probable upside, equities research analysts plainly believe Generation Income Properties is more favorable than Morguard Real Estate Investment Trust.

Profitability

This table compares Generation Income Properties and Morguard Real Estate Investment Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Generation Income Properties	-89.09%	-106.37%	-8.03%
Morguard Real Estate Investment Trust	N/A	N/A	N/A

Insider and Institutional Ownership

20.7% of Generation Income Properties shares are owned by institutional investors. Comparatively, 56.6% of Morguard Real Estate Investment Trust shares are owned by institutional investors. 11.5% of Generation Income Properties 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.

Dividends

Generation Income Properties pays an annual dividend of $0.46 per share and has a dividend yield of 23.0%. Morguard Real Estate Investment Trust pays an annual dividend of $0.88 per share and has a dividend yield of 21.0%. Generation Income Properties pays out -17.9% of its earnings in the form of a dividend. Morguard Real Estate Investment Trust pays out 43.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. 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.

Valuation & Earnings

This table compares Generation Income Properties and Morguard Real Estate Investment Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Generation Income Properties	$9.66 million	1.12	-$5.72 million	($2.57)	-0.78
Morguard Real Estate Investment Trust	N/A	N/A	N/A	$2.03	2.06

Morguard Real Estate Investment Trust has lower revenue, but higher earnings than Generation Income Properties. Generation Income Properties is trading at a lower price-to-earnings ratio than Morguard Real Estate Investment Trust, indicating that it is currently the more affordable of 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 Morguard Real Estate Investment Trust

The Trust is a closed-end real estate investment trust, which owns a diversified portfolio of 46 retail, office and industrial income producing properties in Canada with a book value of $2.3 billion and approximately 8.2 million square feet of leasable space.