Millrose Properties (NYSE:MRP – Get Free Report) and Safehold (NYSE:SAFE – Get Free Report) are both real estate companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Profitability
This table compares Millrose Properties and Safehold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Millrose Properties | 62.60% | 8.13% | 5.07% |
| Safehold | 27.70% | 4.76% | 1.62% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Millrose Properties and Safehold, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Millrose Properties | 0 | 0 | 3 | 1 | 3.25 |
| Safehold | 2 | 7 | 2 | 0 | 2.00 |
Earnings & Valuation
This table compares Millrose Properties and Safehold”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Millrose Properties | $600.46 million | 6.67 | $379.86 million | $2.87 | 9.05 |
| Safehold | $385.55 million | 2.16 | $114.47 million | $1.62 | 7.27 |
Millrose Properties has higher revenue and earnings than Safehold. Safehold is trading at a lower price-to-earnings ratio than Millrose Properties, indicating that it is currently the more affordable of the two stocks.
Dividends
Millrose Properties pays an annual dividend of $3.08 per share and has a dividend yield of 11.9%. Safehold pays an annual dividend of $0.71 per share and has a dividend yield of 6.0%. Millrose Properties pays out 107.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Safehold pays out 43.8% of its earnings in the form of a dividend. Safehold has raised its dividend for 1 consecutive years.
Insider and Institutional Ownership
70.4% of Safehold shares are owned by institutional investors. 0.2% of Millrose Properties shares are owned by company insiders. Comparatively, 3.8% of Safehold shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
Millrose Properties has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500. Comparatively, Safehold has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500.
Summary
Millrose Properties beats Safehold on 13 of the 18 factors compared between the two stocks.
About Millrose Properties
Millrose Properties, Inc. is a real estate investment and management company that focuses on acquiring, developing, and managing high-quality commercial properties. They are headquartered in Purchase, New York.
About Safehold
Safehold Inc. (NYSE: SAFE) is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. Having created the modern ground lease industry in 2017, Safehold continues to help owners of high quality multifamily, office, industrial, hospitality, student housing, life science and mixed-use properties generate higher returns with less risk. The Company, which is taxed as a real estate investment trust (REIT), seeks to deliver safe, growing income and long-term capital appreciation to its shareholders.
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