Head-To-Head Contrast: Highlands REIT (OTCMKTS:HHDS) versus Generation Income Properties (NASDAQ:GIPR)

Generation Income Properties (NASDAQ:GIPR) and Highlands REIT (OTCMKTS:HHDS) are both small-cap real estate companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Volatility & Risk

Generation Income Properties has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, Highlands REIT has a beta of 21.65, indicating that its share price is 2,065% more volatile than the S&P 500.

Earnings & Valuation

This table compares Generation Income Properties and Highlands REIT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Generation Income Properties	$9.74 million	0.05	-$10.34 million	($18.10)	-0.04
Highlands REIT	$37.41 million	2.05	-$11.10 million	($0.01)	-10.65

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

Institutional and Insider Ownership

20.7% of Generation Income Properties shares are held by institutional investors. Comparatively, 0.0% of Highlands REIT shares are held by institutional investors. 6.2% of Generation Income Properties shares are held by company insiders. Comparatively, 2.3% of Highlands REIT shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Generation Income Properties and Highlands REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Generation Income Properties	-102.07%	N/A	-8.90%
Highlands REIT	-30.49%	-5.91%	-3.53%

Analyst Recommendations

This is a summary of current recommendations and price targets for Generation Income Properties and Highlands REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Generation Income Properties	1	0	0	0	1.00
Highlands REIT	0	0	0	0	0.00

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 Highlands REIT

We are a self-advised and self-administered real estate investment trust (REIT) created to own and manage substantially all of the non-core investment properties previously owned and managed by our former parent, InvenTrust Properties Corp., a Maryland corporation (InvenTrust). On April 28, 2016, we were spun-off from InvenTrust through a pro rata distribution (the Distribution) by InvenTrust of 100% of the outstanding shares of our common stock to holders of InvenTrust's common stock. Prior to or concurrent with the separation, we and InvenTrust engaged in certain reorganization transactions that were designed to consolidate substantially all of InvenTrust's remaining non-core investment properties in Highlands.