Hersha Hospitality Trust (NYSE:HT – Get Rating) and Generation Income Properties (NASDAQ:GIPR – Get Rating) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.
Insider and Institutional Ownership
62.6% of Hersha Hospitality Trust shares are held by institutional investors. Comparatively, 4.5% of Generation Income Properties shares are held by institutional investors. 22.4% of Hersha Hospitality Trust shares are held by insiders. Comparatively, 11.6% of Generation Income Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Hersha Hospitality Trust and Generation Income Properties, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hersha Hospitality Trust | 1 | 2 | 1 | 0 | 2.00 |
| Generation Income Properties | 0 | 1 | 1 | 0 | 2.50 |
Dividends
Hersha Hospitality Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.5%. Generation Income Properties pays an annual dividend of $0.47 per share and has a dividend yield of 11.8%. Hersha Hospitality Trust pays out 6.4% of its earnings in the form of a dividend. Generation Income Properties pays out -28.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Generation Income Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
Hersha Hospitality Trust has a beta of 2.01, indicating that its share price is 101% more volatile than the S&P 500. Comparatively, Generation Income Properties has a beta of -0.27, indicating that its share price is 127% less volatile than the S&P 500.
Earnings and Valuation
This table compares Hersha Hospitality Trust and Generation Income Properties’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hersha Hospitality Trust | $399.16 million | 0.57 | $146.72 million | $3.11 | 1.83 |
| Generation Income Properties | $5.43 million | 1.92 | -$3.24 million | ($1.65) | -2.41 |
Hersha Hospitality Trust has higher revenue and earnings than Generation Income Properties. Generation Income Properties is trading at a lower price-to-earnings ratio than Hersha Hospitality Trust, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Hersha Hospitality Trust and Generation Income Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hersha Hospitality Trust | 37.11% | 20.75% | 9.34% |
| Generation Income Properties | -71.24% | -35.30% | -6.21% |
Summary
Hersha Hospitality Trust beats Generation Income Properties on 11 of the 15 factors compared between the two stocks.
About Hersha Hospitality Trust
Hersha Hospitality Trust (HT) is a self-advised real estate investment trust in the hospitality sector, which owns and operates luxury and lifestyle hotels in coastal gateway and resort markets. The Company's 25 hotels totaling 3,811 rooms are located in New York, Washington, DC, Boston, Philadelphia, South Florida, and California. The Company's common shares are traded on The New York Stock Exchange under the ticker HT.
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.
Receive News & Ratings for Hersha Hospitality Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hersha Hospitality Trust and related companies with MarketBeat.com's FREE daily email newsletter.
