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

W. P. Carey (NYSE:WPCGet Free Report) and Generation Income Properties (NASDAQ:GIPRGet Free Report) 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.

Analyst Recommendations

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

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

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

Profitability

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

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

Dividends

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

Risk and Volatility

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

Valuation and Earnings

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

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

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.

Insider & Institutional Ownership

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

Summary

W. P. Carey beats Generation Income Properties on 12 of the 16 factors compared between the two stocks.

About W. P. Carey

(Get Free Report)

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.

About Generation Income Properties

(Get Free Report)

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.

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