Centerspace (NYSE:CSR) versus Safehold (NYSE:SAFE) Financial Contrast

Centerspace (NYSE:CSR) and Safehold (NYSE:SAFE) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.

Analyst Ratings

This is a summary of recent ratings for Centerspace and Safehold, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Centerspace	0	6	2	0	2.25
Safehold	0	7	4	0	2.36

Centerspace presently has a consensus price target of $69.86, suggesting a potential upside of 7.94%. Safehold has a consensus price target of $19.33, suggesting a potential upside of 28.88%. Given Safehold’s stronger consensus rating and higher possible upside, analysts plainly believe Safehold is more favorable than Centerspace.

Dividends

Centerspace pays an annual dividend of $3.08 per share and has a dividend yield of 4.8%. Safehold pays an annual dividend of $0.70 per share and has a dividend yield of 4.7%. Centerspace pays out 172.1% 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 pays out 44.6% of its earnings in the form of a dividend. Centerspace has increased its dividend for 2 consecutive years and Safehold has increased its dividend for 1 consecutive years. Centerspace is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Centerspace has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Safehold has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.

Earnings & Valuation

This table compares Centerspace and Safehold”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Centerspace	$260.98 million	4.14	-$10.69 million	$1.79	36.16
Safehold	$379.55 million	2.84	$105.76 million	$1.57	9.55

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

Profitability

This table compares Centerspace and Safehold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Centerspace	11.14%	3.52%	1.54%
Safehold	29.67%	4.78%	1.63%

Institutional & Insider Ownership

79.0% of Centerspace shares are owned by institutional investors. Comparatively, 70.4% of Safehold shares are owned by institutional investors. 0.4% of Centerspace shares are owned by insiders. Comparatively, 3.5% of Safehold 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.

Summary

Safehold beats Centerspace on 11 of the 17 factors compared between the two stocks.

About Centerspace

Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of September 30, 2023, Centerspace owned interests in 71 apartment communities consisting of 12,785 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for the fourth consecutive year in 2023 by the Minneapolis Star Tribune.

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.