Generation Income Properties (NASDAQ:GIPR) and Two Harbors Investments (NYSE:TWO) Head to Head Review

Generation Income Properties (NASDAQ:GIPR) and Two Harbors Investments (NYSE:TWO) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Earnings & Valuation

This table compares Generation Income Properties and Two Harbors Investments”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Generation Income Properties	$9.76 million	0.74	-$8.35 million	($1.51)	-0.87
Two Harbors Investments	$450.15 million	2.31	$298.17 million	($3.56)	-2.80

Two Harbors Investments has higher revenue and earnings than Generation Income Properties. Two Harbors Investments 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.

Profitability

This table compares Generation Income Properties and Two Harbors Investments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Generation Income Properties	-85.03%	-128.49%	-7.58%
Two Harbors Investments	-67.06%	9.39%	1.07%

Volatility and Risk

Generation Income Properties has a beta of -0.07, suggesting that its share price is 107% less volatile than the S&P 500. Comparatively, Two Harbors Investments has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Insider & Institutional Ownership

20.7% of Generation Income Properties shares are owned by institutional investors. Comparatively, 64.2% of Two Harbors Investments shares are owned by institutional investors. 5.6% of Generation Income Properties shares are owned by insiders. Comparatively, 0.6% of Two Harbors Investments shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Generation Income Properties and Two Harbors Investments, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Generation Income Properties	0	0	0	0	0.00
Two Harbors Investments	0	5	4	0	2.44

Two Harbors Investments has a consensus price target of $12.8750, indicating a potential upside of 28.98%. Given Two Harbors Investments’ stronger consensus rating and higher probable upside, analysts clearly believe Two Harbors Investments is more favorable than Generation Income Properties.

Summary

Two Harbors Investments beats Generation Income Properties on 11 of the 14 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 Two Harbors Investments

Two Harbors Investment Corp. invests in, finances, and manages mortgage servicing rights (MSRs), agency residential mortgage-backed securities (RMBS), and other financial assets through RoundPoint in the United States. The company target assets include agency RMBS collateralized by fixed rate mortgage loans, adjustable rate mortgage loans, hybrid mortgage loans, or derivatives; and other assets, such as financial and mortgage-related assets, including non-agency securities and non-hedging transactions. It qualifies as a REIT for federal income tax purposes. As a REIT, the company must distribute at least 90% of annual taxable income to its stockholders. Two Harbors Investment Corp. was incorporated in 2009 and is headquartered in St. Louis Park, Minnesota.