Safetyome & Growth (NASDAQ: SAFE) and Arbor Realty Trust (NYSE:ABR) are both small-cap financials companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Insider & Institutional Ownership

47.7% of Arbor Realty Trust shares are owned by institutional investors. 16.5% of Arbor Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Safetyome & Growth and Arbor Realty Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Safetyome & Growth 0 4 1 0 2.20
Arbor Realty Trust 0 1 1 0 2.50

Safetyome & Growth currently has a consensus price target of $21.00, indicating a potential upside of 7.20%. Arbor Realty Trust has a consensus price target of $8.88, indicating a potential upside of 10.52%. Given Arbor Realty Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Arbor Realty Trust is more favorable than Safetyome & Growth.

Earnings & Valuation

This table compares Safetyome & Growth and Arbor Realty Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Safetyome & Growth $22.71 million 15.69 $18.04 million N/A N/A
Arbor Realty Trust $282.94 million 1.74 $68.71 million $1.12 7.17

Arbor Realty Trust has higher revenue and earnings than Safetyome & Growth.

Profitability

This table compares Safetyome & Growth and Arbor Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Safetyome & Growth -31.66% -4.24% -1.54%
Arbor Realty Trust 54.47% 10.47% 2.48%

Dividends

Arbor Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 9.0%. Safetyome & Growth does not pay a dividend. Arbor Realty Trust pays out 64.3% of its earnings in the form of a dividend. Arbor Realty Trust has increased its dividend for 5 consecutive years.

Summary

Arbor Realty Trust beats Safetyome & Growth on 11 of the 14 factors compared between the two stocks.

About Safetyome & Growth

Safety, Income and Growth, Inc. is formed primarily to acquire, own, manage, finance and capitalize ground net leases (GNLs). The Company’s portfolio consists of 12 properties, which includes Doubletree Seattle Airport, One Ally Center, Hilton Salt Lake, Doubletree Mission Valley, Doubletree Sonoma, Doubletree Durango, Dallas Market Center: Sheraton Suites, Northside Forsyth Hospital Medical Center, NASA/JPSS Headquarters, The Buckler Apartments, Dallas Market Center: Marriott Courtyard and Lock Up Self Storage Facility.

About Arbor Realty Trust

Arbor Realty Trust, Inc. is a real estate investment trust. The Company invests in a portfolio of structured finance assets in the multifamily and commercial real estate markets, primarily consisting of bridge and mezzanine loans, including junior participating interests in first mortgages, preferred and direct equity. Its segments include Structured Business and Agency Business. In addition, the Company may also directly acquire real property and invest in real estate-related notes and certain mortgage-related securities. It focuses on investment types, such as Bridge Financing, Mezzanine Financing, Junior Participation Financing and Preferred Equity Investments. It offers bridge financing products to borrowers, typically seeking short-term capital to use in an acquisition of property. It offers mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower’s equity in a transaction.

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