Franklin BSP Realty Trust (NYSE:FBRT) and Generation Income Properties (NASDAQ:GIPR) Critical Analysis

Franklin BSP Realty Trust (NYSE:FBRTGet Free Report) and Generation Income Properties (NASDAQ:GIPRGet Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Valuation & Earnings

This table compares Franklin BSP Realty Trust and Generation Income Properties”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Franklin BSP Realty Trust $210.45 million 4.17 $95.88 million $0.98 10.87
Generation Income Properties $9.76 million 1.04 -$8.35 million ($1.90) -0.98

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

Risk & Volatility

Franklin BSP Realty Trust has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Generation Income Properties has a beta of -0.1, meaning that its share price is 110% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Franklin BSP Realty Trust and Generation Income Properties, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Franklin BSP Realty Trust 0 1 4 1 3.00
Generation Income Properties 1 0 0 0 1.00

Franklin BSP Realty Trust presently has a consensus price target of $14.67, suggesting a potential upside of 37.65%. Given Franklin BSP Realty Trust’s stronger consensus rating and higher possible upside, equities analysts plainly believe Franklin BSP Realty Trust is more favorable than Generation Income Properties.

Profitability

This table compares Franklin BSP Realty Trust and Generation Income Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Franklin BSP Realty Trust 53.36% 7.26% 1.54%
Generation Income Properties -105.40% -247.43% -8.66%

Institutional and Insider Ownership

59.9% of Franklin BSP Realty Trust shares are owned by institutional investors. Comparatively, 20.7% of Generation Income Properties shares are owned by institutional investors. 1.4% of Franklin BSP Realty 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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Franklin BSP Realty Trust beats Generation Income Properties on 14 of the 15 factors compared between the two stocks.

About Franklin BSP Realty Trust

(Get Free Report)

Benefit Street Partners operates as a self-managed real estate investment trust (REIT). BSP earns income from investing in a leveraged portfolio of residential mortgage pass-through securities consisting almost exclusively of adjustable-rate mortgage (ARM) securities issued and guaranteed by government-sponsored enterprises, either Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the government-sponsored enterprises (GSEs)), or by an agency of the federal government, Government National Mortgage Association (Ginnie Mae). BSP’s investment strategy focuses on managing a portfolio of residential mortgage investments consisting almost exclusively of ARM Agency Securities. As of December 31, 2012, the Company’s securities consisted of Agency Securities classified as available-for-sale and Residential mortgage securities classified as held-to-maturity.

About Generation Income Properties

(Get Free Report)

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.

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