Financial Analysis: Generation Income Properties (NASDAQ:GIPR) and Public Storage (NYSE:PSA)

Generation Income Properties (NASDAQ:GIPRGet Rating) and Public Storage (NYSE:PSAGet Rating) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Dividends

Generation Income Properties pays an annual dividend of $0.65 per share and has a dividend yield of 9.7%. Public Storage pays an annual dividend of $8.00 per share and has a dividend yield of 2.5%. Public Storage pays out 77.7% 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 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.

Insider & Institutional Ownership

3.8% of Generation Income Properties shares are held by institutional investors. Comparatively, 78.5% of Public Storage shares are held by institutional investors. 11.0% of Public Storage shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Generation Income Properties and Public Storage’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Generation Income Properties $3.90 million 3.84 -$1.24 million N/A N/A
Public Storage $3.42 billion 16.36 $1.95 billion $10.29 30.96

Public Storage has higher revenue and earnings than Generation Income Properties.

Analyst Ratings

This is a summary of current ratings and target prices for Generation Income Properties and Public Storage, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Generation Income Properties 0 0 1 0 3.00
Public Storage 1 5 5 1 2.50

Public Storage has a consensus price target of $363.25, indicating a potential upside of 14.04%. Given Public Storage’s higher possible upside, analysts clearly believe Public Storage is more favorable than Generation Income Properties.

Profitability

This table compares Generation Income Properties and Public Storage’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Generation Income Properties N/A N/A N/A
Public Storage 54.79% 38.01% 12.04%

Summary

Public Storage beats Generation Income Properties on 11 of the 15 factors compared between the two stocks.

Generation Income Properties Company Profile (Get Rating)

Generation Income Properties (GIP) is a Real Estate Investment Trust based in Tampa, Florida that specializes in acquiring a diversified portfolio of high quality single tenant properties. Our portfolio consists of office, industrial and retail assets across the United States occupied by primarily investment grade credit tenants.

Public Storage Company Profile (Get Rating)

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns and operates self-storage facilities. At September 30, 2020, we had: (i) interests in 2,504 self-storage facilities located in 38 states with approximately 171 million net rentable square feet in the United States, (ii) an approximate 35% common equity interest in Shurgard Self Storage SA (Euronext Brussels:SHUR) which owned 239 self-storage facilities located in seven Western European nations with approximately 13 million net rentable square feet operated under the Shurgard brand and (iii) an approximate 42% common equity interest in PS Business Parks, Inc. (NYSE:PSB) which owned and operated approximately 28 million rentable square feet of commercial space at September 30, 2020. Our headquarters are located in Glendale, California.

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