Comparing ARMOUR Residential REIT (NYSE:ARR) and Generation Income Properties (NASDAQ:GIPR)

ARMOUR Residential REIT (NYSE:ARR) and Generation Income Properties (NASDAQ:GIPR) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Valuation & Earnings

This table compares ARMOUR Residential REIT 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
ARMOUR Residential REIT	$550.95 million	2.50	-$14.39 million	($0.24)	-62.75
Generation Income Properties	$9.76 million	0.44	-$8.35 million	($1.51)	-0.53

Generation Income Properties has lower revenue, but higher earnings than ARMOUR Residential REIT. ARMOUR Residential REIT 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for ARMOUR Residential REIT and Generation Income Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARMOUR Residential REIT	0	5	1	0	2.17
Generation Income Properties	0	0	0	0	0.00

ARMOUR Residential REIT presently has a consensus target price of $16.00, suggesting a potential upside of 6.24%. Given ARMOUR Residential REIT’s stronger consensus rating and higher probable upside, research analysts plainly believe ARMOUR Residential REIT is more favorable than Generation Income Properties.

Profitability

This table compares ARMOUR Residential REIT and Generation Income Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ARMOUR Residential REIT	-4.55%	15.89%	1.64%
Generation Income Properties	-85.03%	-128.49%	-7.58%

Institutional and Insider Ownership

54.2% of ARMOUR Residential REIT shares are owned by institutional investors. Comparatively, 20.7% of Generation Income Properties shares are owned by institutional investors. 0.4% of ARMOUR Residential REIT 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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

ARMOUR Residential REIT has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Generation Income Properties has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500.

Summary

ARMOUR Residential REIT beats Generation Income Properties on 11 of the 14 factors compared between the two stocks.

About ARMOUR Residential REIT

ARMOUR Residential REIT, Inc. invests in residential mortgage-backed securities (MBS) in the United States. Its securities portfolio primarily consists of the United States Government-sponsored entity's (GSE) and the Government National Mortgage Administration's issued or guaranteed securities backed by fixed rate, hybrid adjustable rate, and adjustable-rate home loans; and unsecured notes and bonds issued by the GSE and the United States treasuries, as well as money market instruments. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. ARMOUR Residential REIT, Inc. was incorporated in 2008 and is based in Vero Beach, Florida.

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.