Safehold (NYSE:SAFE – Get Free Report) and Invitation Home (NYSE:INVH – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.
Risk & Volatility
Safehold has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Invitation Home has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings for Safehold and Invitation Home, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Safehold | 0 | 4 | 4 | 0 | 2.50 |
| Invitation Home | 0 | 9 | 9 | 0 | 2.50 |
Institutional and Insider Ownership
70.4% of Safehold shares are owned by institutional investors. Comparatively, 96.8% of Invitation Home shares are owned by institutional investors. 3.5% of Safehold shares are owned by company insiders. Comparatively, 0.3% of Invitation Home shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Safehold and Invitation Home’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% |
| Invitation Home | 18.01% | 4.82% | 2.51% |
Dividends
Safehold pays an annual dividend of $0.70 per share and has a dividend yield of 4.5%. Invitation Home pays an annual dividend of $1.16 per share and has a dividend yield of 3.6%. Safehold pays out 47.9% of its earnings in the form of a dividend. Invitation Home pays out 150.6% 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 has raised its dividend for 1 consecutive years and Invitation Home has raised its dividend for 1 consecutive years. Safehold is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares Safehold and Invitation Home”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Safehold | $370.15 million | 3.04 | $105.76 million | $1.46 | 10.75 |
| Invitation Home | $2.65 billion | 7.55 | $453.92 million | $0.77 | 42.36 |
Invitation Home has higher revenue and earnings than Safehold. Safehold is trading at a lower price-to-earnings ratio than Invitation Home, indicating that it is currently the more affordable of the two stocks.
Summary
Invitation Home beats Safehold on 8 of the 15 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 Invitation Home
Invitation Homes, an S&P 500 company, is the nation's premier single-family home leasing and management company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, Together with you, we make a house a home, reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.
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