Head to Head Contrast: Annaly Capital Management (NYSE:NLY) versus Generation Income Properties (NASDAQ:GIPR)

Annaly Capital Management (NYSE:NLY) and Generation Income Properties (NASDAQ:GIPR) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Volatility and Risk

Annaly Capital Management has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Generation Income Properties has a beta of -0.1, indicating that its share price is 110% less volatile than the S&P 500.

Earnings and Valuation

This table compares Annaly Capital Management and Generation Income Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Annaly Capital Management	$4.84 billion	2.94	$1.00 billion	$1.01	21.94
Generation Income Properties	$9.76 million	0.54	-$8.35 million	($1.90)	-0.51

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

Profitability

This table compares Annaly Capital Management and Generation Income Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Annaly Capital Management	13.76%	15.53%	1.68%
Generation Income Properties	-105.40%	-247.43%	-8.66%

Insider & Institutional Ownership

51.6% of Annaly Capital Management shares are held by institutional investors. Comparatively, 20.7% of Generation Income Properties shares are held by institutional investors. 0.2% of Annaly Capital Management shares are held by insiders. Comparatively, 5.6% of Generation Income Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Annaly Capital Management and Generation Income Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Annaly Capital Management	0	4	7	0	2.64
Generation Income Properties	0	0	0	0	0.00

Annaly Capital Management currently has a consensus price target of $20.83, suggesting a potential downside of 5.99%. Given Annaly Capital Management’s stronger consensus rating and higher possible upside, research analysts plainly believe Annaly Capital Management is more favorable than Generation Income Properties.

Summary

Annaly Capital Management beats Generation Income Properties on 13 of the 14 factors compared between the two stocks.

About Annaly Capital Management

Annaly Capital Management, Inc., a diversified capital manager, engages in mortgage finance. The company invests in agency mortgage-backed securities collateralized by residential mortgages; non-agency residential whole loans and securitized products within the residential and commercial markets; mortgage servicing rights; agency commercial mortgage-backed securities; to-be-announced forward contracts; residential mortgage loans; and agency or private label credit risk transfer securities. It has elected to be taxed as a real estate investment trust (REIT). As a REIT, it is not subject to federal income tax to the extent that it distributes its taxable income to its shareholders. The company was incorporated in 1996 and is based 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.