Comparing Safehold (NYSE:SAFE) & Millrose Properties (NYSE:MRP)

Safehold (NYSE:SAFE) and Millrose Properties (NYSE:MRP) are both real estate companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Safehold	27.70%	4.76%	1.62%
Millrose Properties	62.60%	8.13%	5.07%

Volatility and Risk

Safehold has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500. Comparatively, Millrose Properties has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Institutional & Insider Ownership

70.4% of Safehold shares are held by institutional investors. 3.8% of Safehold shares are held by insiders. Comparatively, 0.2% of Millrose Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safehold	$385.55 million	2.22	$114.47 million	$1.62	7.47
Millrose Properties	$600.46 million	6.32	$379.86 million	$2.87	8.57

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.

Analyst Recommendations

This is a breakdown of current recommendations for Safehold and Millrose Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safehold	2	7	2	0	2.00
Millrose Properties	0	1	2	1	3.00

Safehold currently has a consensus price target of $15.67, suggesting a potential upside of 29.44%. Millrose Properties has a consensus price target of $37.67, suggesting a potential upside of 53.11%. Given Millrose Properties’ stronger consensus rating and higher probable upside, analysts plainly believe Millrose Properties is more favorable than Safehold.

Dividends

Safehold pays an annual dividend of $0.71 per share and has a dividend yield of 5.9%. Millrose Properties pays an annual dividend of $3.08 per share and has a dividend yield of 12.5%. Safehold pays out 43.8% of its earnings in the form of a dividend. 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 has raised its dividend for 1 consecutive years.

Summary

Millrose Properties beats Safehold on 12 of the 17 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 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.