Generation Income Properties (NASDAQ:GIPR) vs. Manhattan Bridge Capital (NASDAQ:LOAN) Critical Analysis

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 companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Analyst Recommendations

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

	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, suggesting a potential upside of 179.33%. Given Generation Income Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Generation Income Properties is more favorable than Manhattan Bridge Capital.

Insider & Institutional Ownership

21.8% of Manhattan Bridge Capital shares are held by institutional investors. Comparatively, 20.7% of Generation Income Properties shares are held by institutional investors. 24.5% of Manhattan Bridge Capital shares are held by company insiders. Comparatively, 5.6% of Generation Income Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Manhattan Bridge Capital and Generation Income Properties”s top-line 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	8.61	$5.48 million	$0.49	11.39
Generation Income Properties	$7.63 million	1.27	-$5.72 million	($2.50)	-0.72

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%

Risk & Volatility

Manhattan Bridge Capital has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, Generation Income Properties has a beta of -0.11, indicating that its share price is 111% less volatile than the S&P 500.

Summary

Manhattan Bridge Capital beats Generation Income Properties on 10 of the 13 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.