Head-To-Head Contrast: Safehold (SAFE) & The Competition

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

Volatility and Risk

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

Profitability

This table compares Safehold and its peers’ 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%

Institutional & Insider 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 company insiders. Comparatively, 7.5% of shares of all “Specialized REITs” companies are held 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.

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 peers, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Safehold and its peers gross revenue, earnings per share 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 peers have higher revenue and earnings than Safehold. Safehold is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and price targets for Safehold and its peers, as reported by MarketBeat.com.

	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 target price 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 possible upside, analysts plainly believe Safehold is more favorable than its peers.

Summary

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

About Safehold

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.