Critical Analysis: Generation Income Properties (NASDAQ:GIPR) vs. Blackstone Mortgage Trust (NYSE:BXMT)

Blackstone Mortgage Trust (NYSE:BXMT) and Generation Income Properties (NASDAQ:GIPR) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.

Insider & Institutional Ownership

64.2% of Blackstone Mortgage Trust shares are owned by institutional investors. Comparatively, 20.7% of Generation Income Properties shares are owned by institutional investors. 0.9% of Blackstone Mortgage Trust shares are owned by company insiders. Comparatively, 5.6% 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 company is poised for long-term growth.

Profitability

This table compares Blackstone Mortgage Trust and Generation Income Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blackstone Mortgage Trust	-12.91%	9.35%	1.68%
Generation Income Properties	-89.09%	-106.37%	-8.03%

Analyst Recommendations

This is a summary of current recommendations and price targets for Blackstone Mortgage Trust and Generation Income Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blackstone Mortgage Trust	0	6	2	0	2.25
Generation Income Properties	0	1	0	0	2.00

Blackstone Mortgage Trust currently has a consensus price target of $20.08, indicating a potential upside of 8.79%. Generation Income Properties has a consensus price target of $5.00, indicating a potential upside of 160.40%. Given Generation Income Properties’ higher probable upside, analysts plainly believe Generation Income Properties is more favorable than Blackstone Mortgage Trust.

Valuation & Earnings

This table compares Blackstone Mortgage Trust and Generation Income Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blackstone Mortgage Trust	$532.49 million	6.00	$246.55 million	($1.39)	-13.28
Generation Income Properties	$9.66 million	1.08	-$5.72 million	($2.65)	-0.72

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

Dividends

Blackstone Mortgage Trust pays an annual dividend of $1.88 per share and has a dividend yield of 10.2%. Generation Income Properties pays an annual dividend of $0.46 per share and has a dividend yield of 24.0%. Blackstone Mortgage Trust pays out -135.3% of its earnings in the form of a dividend. Generation Income Properties pays out -17.4% 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.

Volatility & Risk

Blackstone Mortgage Trust has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, Generation Income Properties has a beta of -0.11, indicating that its share price is 111% less volatile than the S&P 500.

Summary

Blackstone Mortgage Trust beats Generation Income Properties on 12 of the 16 factors compared between the two stocks.

About Blackstone Mortgage Trust

Blackstone Mortgage Trust, Inc., a real estate finance company, originates senior loans collateralized by commercial properties in North America, Europe, and Australia. The company originates and acquires senior floating rate mortgage loans that are secured by a first-priority mortgage on commercial real estate assets. It operates as a real estate investment trust for federal income tax purposes. The company was formerly known as Capital Trust, Inc. and changed its name to Blackstone Mortgage Trust, Inc. in May 2013. Blackstone Mortgage Trust, Inc. was incorporated in 1998 and is headquartered in New York, New York.

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.