Analyzing Manhattan Bridge Capital (NASDAQ:LOAN) & Generation Income Properties (NASDAQ:GIPR)

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

Valuation & Earnings

This table compares Manhattan Bridge Capital 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
Manhattan Bridge Capital	$7.41 million	8.51	$5.48 million	$0.49	11.24
Generation Income Properties	$10.22 million	0.93	-$5.72 million	($2.50)	-0.70

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Manhattan Bridge Capital	56.93%	13.06%	7.75%
Generation Income Properties	-97.27%	-122.61%	-9.33%

Volatility and Risk

Manhattan Bridge Capital has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500. Comparatively, Generation Income Properties has a beta of -0.1, suggesting that its share price is 110% less volatile than the S&P 500.

Dividends

Manhattan Bridge Capital pays an annual dividend of $0.46 per share and has a dividend yield of 8.3%. Generation Income Properties pays an annual dividend of $0.46 per share and has a dividend yield of 26.1%. Manhattan Bridge Capital pays out 93.9% 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 pays out -18.4% of its earnings in the form of a dividend. Generation Income Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current recommendations for Manhattan Bridge Capital and Generation Income Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manhattan Bridge Capital	0	0	0	0	0.00
Generation Income Properties	0	1	0	0	2.00

Generation Income Properties has a consensus target price of $5.00, indicating a potential upside of 184.09%. Given Generation Income Properties’ stronger consensus rating and higher probable upside, analysts plainly believe Generation Income Properties is more favorable than Manhattan Bridge Capital.

Insider and Institutional Ownership

21.8% of Manhattan Bridge Capital shares are owned by institutional investors. Comparatively, 20.7% of Generation Income Properties shares are owned by institutional investors. 24.5% of Manhattan Bridge Capital 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

Manhattan Bridge Capital beats Generation Income Properties on 10 of the 15 factors compared between the two stocks.

About Manhattan Bridge Capital

Manhattan Bridge Capital, Inc., a real estate finance company, originates, services, and manages a portfolio of first mortgage loans in the United States. The company offers short-term, secured, and non-banking loans to real estate investors to fund acquisition, renovation, rehabilitation, or development of residential or commercial properties. Its loans are secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers. 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. The company was founded in 1989 and is headquartered in Great Neck, 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.