Head-To-Head Review: Generation Income Properties (NASDAQ:GIPR) and Orchid Island Capital (NYSE:ORC)

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Generation Income Properties and Orchid Island Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Generation Income Properties	0	0	0	0	0.00
Orchid Island Capital	0	2	0	0	2.00

Volatility & Risk

Generation Income Properties has a beta of -0.1, meaning that its share price is 110% less volatile than the S&P 500. Comparatively, Orchid Island Capital has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500.

Insider and Institutional Ownership

20.7% of Generation Income Properties shares are owned by institutional investors. Comparatively, 32.7% of Orchid Island Capital shares are owned by institutional investors. 5.6% of Generation Income Properties shares are owned by company insiders. Comparatively, 0.4% of Orchid Island Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Generation Income Properties and Orchid Island Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Generation Income Properties	-105.40%	-247.43%	-8.66%
Orchid Island Capital	N/A	4.34%	0.51%

Earnings and Valuation

This table compares Generation Income Properties and Orchid Island Capital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Generation Income Properties	$9.76 million	0.53	-$8.35 million	($1.90)	-0.50
Orchid Island Capital	$241.58 million	3.77	$37.66 million	$0.20	35.93

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

Summary

Orchid Island Capital beats Generation Income Properties on 11 of the 12 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 Orchid Island Capital

Orchid Island Capital, Inc., a specialty finance company, invests in residential mortgage-backed securities (RMBS) in the United States. The company’s RMBS is backed by single-family residential mortgage loans, referred as Agency RMBS. Its portfolio includes traditional pass-through Agency RMBS, such as mortgage pass through certificates and collateralized mortgage obligations; and structured Agency RMBS comprising interest only securities, inverse interest only securities, and principal only securities. The company has elected to be taxed as a real estate investment trust (REIT) for the United States federal income tax purposes. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to stockholders, if it annually distributes dividends equal to at least 90% of its REIT taxable income to its stockholders. Orchid Island Capital, Inc. was incorporated in 2010 and is headquartered in Vero Beach, Florida.