Comparing Safehold (NYSE:SAFE) & Gadsden Properties (OTCMKTS:GADS)

Safehold (NYSE:SAFE) and Gadsden Properties (OTCMKTS:GADS) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Risk and Volatility

Safehold has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, Gadsden Properties has a beta of -8.02, meaning that its share price is 902% less volatile than the S&P 500.

Profitability

This table compares Safehold and Gadsden Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Safehold	27.45%	4.70%	1.61%
Gadsden Properties	N/A	N/A	N/A

Insider and Institutional Ownership

70.4% of Safehold shares are owned by institutional investors. 3.5% of Safehold shares are owned by insiders. Comparatively, 5.0% of Gadsden Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Safehold and Gadsden Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safehold	$374.10 million	2.77	$105.76 million	$1.43	10.11
Gadsden Properties	N/A	N/A	N/A	N/A	N/A

Safehold has higher revenue and earnings than Gadsden Properties.

Analyst Ratings

This is a summary of current recommendations and price targets for Safehold and Gadsden Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safehold	0	7	3	0	2.30
Gadsden Properties	0	0	0	0	0.00

Safehold presently has a consensus target price of $19.89, suggesting a potential upside of 37.51%. Given Safehold’s stronger consensus rating and higher probable upside, research analysts clearly believe Safehold is more favorable than Gadsden Properties.

Summary

Safehold beats Gadsden Properties on 9 of the 10 factors compared between the two stocks.

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.

About Gadsden Properties

Gadsden Properties, Inc. is a Nevada corporation that was formed on December 28, 2010. Gadsden concentrates primarily on investments in high quality income-producing assets, residential developments and other opportunistic commercial properties in secondary and tertiary markets across the United States. The Company derives value from smaller, flexible retail investments that range from $5 million to $50 million and off-market mixed-use properties ranging from $50 million to $250 million. As a result of this chosen strategy, we believe that Gadsden is developing a unique competitive advantage that generally allows the Company to invest in markets and assets that are often overlooked by larger institutional investors, such as publicly-traded REITs and other large institutional investors. As part of its strategy, Gadsden attracts specific sellers that prefer the tax deferral advantages offered through issuing operating partnership units in exchange for their properties. These real estate assets are typically operated by independent owners that are seeking to monetize their real estate holdings, and who are typically not well capitalized or well-seasoned real estate operators. These transactions create a variety of outcomes for Gadsden and the sellers typically resulting in lease-up and value-added opportunities that may not be otherwise achieved.