Safety Income & Growth (NYSE: SAFE) and Senior Housing Properties Trust (NASDAQ:SNH) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares Safety Income & Growth and Senior Housing Properties Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Safety Income & Growth N/A N/A N/A
Senior Housing Properties Trust 11.72% 3.79% 1.74%

Institutional and Insider Ownership

40.3% of Safety Income & Growth shares are held by institutional investors. Comparatively, 73.8% of Senior Housing Properties Trust shares are held by institutional investors. 1.3% of Senior Housing Properties Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Senior Housing Properties Trust pays an annual dividend of $1.56 per share and has a dividend yield of 8.2%. Safety Income & Growth does not pay a dividend. Senior Housing Properties Trust pays out 294.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Safety Income & Growth and Senior Housing Properties Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Safety Income & Growth 0 5 1 0 2.17
Senior Housing Properties Trust 1 4 3 0 2.25

Safety Income & Growth currently has a consensus price target of $20.58, suggesting a potential upside of 16.40%. Senior Housing Properties Trust has a consensus price target of $21.64, suggesting a potential upside of 13.55%. Given Safety Income & Growth’s higher probable upside, analysts plainly believe Safety Income & Growth is more favorable than Senior Housing Properties Trust.

Valuation and Earnings

This table compares Safety Income & Growth and Senior Housing Properties Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Safety Income & Growth $21.74 million 14.79 $6.61 million N/A N/A
Senior Housing Properties Trust $1.06 billion 4.28 $141.29 million $0.53 35.96

Senior Housing Properties Trust has higher revenue and earnings than Safety Income & Growth.

Summary

Senior Housing Properties Trust beats Safety Income & Growth on 10 of the 13 factors compared between the two stocks.

About Safety Income & 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 Senior Housing Properties Trust

Senior Housing Properties Trust is a real estate investment trust (REIT). The Company’s segments include triple net senior living communities that provide short term and long term residential care and other services for residents; managed senior living communities that provide short term and long term residential care and other services for residents; properties leased to medical providers, medical related businesses, clinics and biotech laboratory tenants (MOBs), and all other, including certain properties that offer wellness, fitness and spa services to members. Properties in triple net senior living communities segment include leased independent living communities, assisted living communities and skilled nursing facilities. Properties in managed senior living communities segment include managed independent living communities and assisted living communities.

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