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

Dividends

Investors Real Estate Trust pays an annual dividend of $0.28 per share and has a dividend yield of 4.5%. Safetyome & Growth does not pay a dividend. Investors Real Estate Trust pays out 107.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Investors Real Estate Trust and Safetyome & Growth’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Investors Real Estate Trust $205.74 million 3.62 $99.75 million $0.26 23.77
Safetyome & Growth $22.71 million 15.74 $18.04 million N/A N/A

Investors Real Estate Trust has higher revenue and earnings than Safetyome & Growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Investors Real Estate Trust and Safetyome & Growth, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Investors Real Estate Trust 0 2 1 0 2.33
Safetyome & Growth 0 5 1 0 2.17

Investors Real Estate Trust currently has a consensus target price of $6.18, suggesting a potential upside of 0.05%. Safetyome & Growth has a consensus target price of $21.00, suggesting a potential upside of 6.87%. Given Safetyome & Growth’s higher possible upside, analysts plainly believe Safetyome & Growth is more favorable than Investors Real Estate Trust.

Insider & Institutional Ownership

53.7% of Investors Real Estate Trust shares are held by institutional investors. 1.0% of Investors Real Estate Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Investors Real Estate Trust and Safetyome & Growth’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Investors Real Estate Trust 21.07% -2.51% -0.80%
Safetyome & Growth -31.66% -4.24% -1.54%

Summary

Investors Real Estate Trust beats Safetyome & Growth on 9 of the 13 factors compared between the two stocks.

About Investors Real Estate Trust

Investors Real Estate Trust is a self-advised equity real estate investment trust (REIT). The Company’s business consists of owning and operating income-producing real estate properties. Its segments include Multifamily, Healthcare and All Other. Its investments consist of multifamily and healthcare properties located primarily in the upper Midwest states of Minnesota and North Dakota. It conducts its business operations through its operating partnership, IRET Properties, which is principally engaged in acquiring, owning, operating and leasing real estate. It invests in multifamily properties and commercial properties that are leased to single or multiple tenants, usually for approximately five years or longer. As of May 26, 2017, the Company held for investment 86 multifamily properties containing 12,813 apartment units and 44 commercial properties, consisting of healthcare, industrial, office and retail, containing approximately 2.7 million square feet of leasable space.

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.

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