Safehold (NYSE:SAFE) vs. Boardwalk Real Estate Investment Trust (OTCMKTS:BOWFF) Critical Analysis

Safehold (NYSE:SAFE) and Boardwalk Real Estate Investment Trust (OTCMKTS:BOWFF) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Earnings and Valuation

This table compares Safehold and Boardwalk Real Estate Investment Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safehold	$365.68 million	3.01	$105.76 million	$1.46	10.51
Boardwalk Real Estate Investment Trust	$440.33 million	6.27	$429.28 million	$4.00	12.94

Boardwalk Real Estate Investment Trust has higher revenue and earnings than Safehold. Safehold is trading at a lower price-to-earnings ratio than Boardwalk Real Estate Investment Trust, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Safehold has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Boardwalk Real Estate Investment Trust has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Insider and Institutional Ownership

70.4% of Safehold shares are held by institutional investors. 3.5% of Safehold shares are held by insiders. Comparatively, 19.0% of Boardwalk Real Estate Investment Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Safehold and Boardwalk Real Estate Investment Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Safehold	28.20%	4.76%	1.64%
Boardwalk Real Estate Investment Trust	67.26%	8.55%	4.79%

Analyst Ratings

This is a summary of current recommendations and price targets for Safehold and Boardwalk Real Estate Investment Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safehold	0	5	4	0	2.44
Boardwalk Real Estate Investment Trust	0	1	0	0	2.00

Safehold presently has a consensus price target of $22.33, indicating a potential upside of 45.49%. Given Safehold’s stronger consensus rating and higher possible upside, analysts plainly believe Safehold is more favorable than Boardwalk Real Estate Investment Trust.

Dividends

Safehold pays an annual dividend of $0.71 per share and has a dividend yield of 4.6%. Boardwalk Real Estate Investment Trust pays an annual dividend of $1.19 per share and has a dividend yield of 2.3%. Safehold pays out 48.6% of its earnings in the form of a dividend. Boardwalk Real Estate Investment Trust pays out 29.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Safehold has raised its dividend for 1 consecutive years. Safehold is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Boardwalk Real Estate Investment Trust beats Safehold on 10 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 Boardwalk Real Estate Investment Trust

Boardwalk REIT strives to be Canada’s friendliest community provider and is a leading owner/operator of multi-family rental communities. Providing homes in more than 200 communities, with over 34,000 residential suites totaling over 29 million net rentable square feet, Boardwalk has a proven long-term track record of building better communities, where love always lives. Our three-tiered and distinct brands: Boardwalk Living, Boardwalk Communities, and Boardwalk Lifestyle, cater to a large diverse demographic and has evolved to capture the life cycle of all Resident Members. Boardwalk’s disciplined approach to capital allocation, acquisition, development, purposeful re-positioning, and management of apartment communities allows the Trust to provide its brand of community across Canada creating exceptional Resident Member experiences. Differentiated by its peak performance culture, Boardwalk is committed to delivering exceptional service, product quality and experience to our Resident Members who reward us with high retention and market leading operating results, which in turn, lead to higher free cash flow and investment returns, stable monthly distributions, and value creation for all our stakeholders. Boardwalk REIT’s Trust Units are listed on the Toronto Stock Exchange, trading under the symbol BEI.UN.