Safehold (SAFE) vs. Its Competitors Financial Contrast

Safehold (NYSE:SAFE) is one of 35 publicly-traded companies in the “Specialized REITs” industry, but how does it compare to its competitors? We will compare Safehold to related companies based on the strength of its dividends, analyst recommendations, earnings, risk, profitability, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Safehold and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safehold	2	9	2	0	2.00
Safehold Competitors	522	2789	3668	191	2.49

Safehold presently has a consensus price target of $14.00, suggesting a potential upside of 35.46%. As a group, “Specialized REITs” companies have a potential upside of 11.76%. Given Safehold’s higher probable upside, analysts clearly believe Safehold is more favorable than its competitors.

Earnings and Valuation

This table compares Safehold and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Safehold	$385.55 million	$114.47 million	6.38
Safehold Competitors	$2.75 billion	$596.00 million	31.79

Safehold’s competitors have higher revenue and earnings than Safehold. Safehold is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

70.4% of Safehold shares are held by institutional investors. Comparatively, 78.0% of shares of all “Specialized REITs” companies are held by institutional investors. 3.8% of Safehold shares are held by insiders. Comparatively, 7.5% of shares of all “Specialized REITs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Safehold pays an annual dividend of $0.71 per share and has a dividend yield of 6.9%. Safehold pays out 43.8% of its earnings in the form of a dividend. As a group, “Specialized REITs” companies pay a dividend yield of 3.3% and pay out 120.1% of their earnings in the form of a dividend. Safehold has raised its dividend for 1 consecutive years. Safehold is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Profitability

This table compares Safehold and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Safehold	26.19%	4.63%	1.58%
Safehold Competitors	-4.53%	-3.15%	2.04%

Volatility and Risk

Safehold has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500. Comparatively, Safehold’s competitors have a beta of 0.92, indicating that their average stock price is 8% less volatile than the S&P 500.

Summary

Safehold competitors beat Safehold on 9 of the 15 factors compared.

Safehold Company Profile

Safehold is a real estate investment trust (REIT) focused on owning ground leases beneath commercial properties. Under this structure, Safehold owns the land while the property owner retains ownership of the buildings and is responsible for their operations. The company’s ground leases support a range of property types, including office, multifamily, and mixed-use real estate. Safehold works with property owners and developers seeking long-term arrangements for the land beneath their properties.