Head-To-Head Contrast: Manhattan Bridge Capital (NASDAQ:LOAN) versus Generation Income Properties (NASDAQ:GIPR)

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

Risk & Volatility

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

Institutional and Insider Ownership

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

Dividends

Generation Income Properties pays an annual dividend of $0.46 per share and has a dividend yield of 26.1%. Manhattan Bridge Capital pays an annual dividend of $0.46 per share and has a dividend yield of 8.2%. Generation Income Properties pays out -18.4% of its earnings in the form of a dividend. 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Generation Income Properties and Manhattan Bridge Capital”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Generation Income Properties	$10.22 million	0.93	-$5.72 million	($2.50)	-0.70
Manhattan Bridge Capital	$7.41 million	8.61	$5.48 million	$0.49	11.39

Manhattan Bridge Capital has lower revenue, but higher earnings 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 Generation Income Properties and Manhattan Bridge Capital’s net margins, return on equity and return on assets.

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

Analyst Recommendations

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

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

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

Summary

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

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.

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.