Comparing Universal Health Realty Income Trust (NYSE:UHT) and Safehold (NYSE:SAFE)

Safehold (NYSE:SAFE) and Universal Health Realty Income Trust (NYSE:UHT) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.

Dividends

Safehold pays an annual dividend of $0.71 per share and has a dividend yield of 3.3%. Universal Health Realty Income Trust pays an annual dividend of $2.92 per share and has a dividend yield of 7.2%. Safehold pays out 41.8% of its earnings in the form of a dividend. Universal Health Realty Income Trust pays out 222.9% 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 & Valuation

This table compares Safehold and Universal Health Realty Income Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safehold	$352.58 million	4.35	-$54.97 million	$1.70	12.62
Universal Health Realty Income Trust	$95.57 million	5.84	$15.40 million	$1.31	30.75

Universal Health Realty Income Trust has lower revenue, but higher earnings than Safehold. Safehold is trading at a lower price-to-earnings ratio than Universal Health Realty Income Trust, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Safehold has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500. Comparatively, Universal Health Realty Income Trust has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Safehold and Universal Health Realty Income Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safehold	0	4	5	0	2.56
Universal Health Realty Income Trust	0	0	0	0	0.00

Safehold currently has a consensus price target of $28.22, suggesting a potential upside of 31.57%. Given Safehold’s stronger consensus rating and higher possible upside, research analysts plainly believe Safehold is more favorable than Universal Health Realty Income Trust.

Institutional & Insider Ownership

70.4% of Safehold shares are held by institutional investors. Comparatively, 64.7% of Universal Health Realty Income Trust shares are held by institutional investors. 3.3% of Safehold shares are held by insiders. Comparatively, 2.2% of Universal Health Realty Income Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Safehold and Universal Health Realty Income Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Safehold	32.08%	4.79%	1.66%
Universal Health Realty Income Trust	18.41%	9.44%	3.07%

Summary

Safehold beats Universal Health Realty Income Trust on 10 of the 16 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 Universal Health Realty Income Trust

Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human-service related facilities including acute care hospitals, behavioral health care hospitals, specialty facilities, medical/office buildings, free-standing emergency departments and childcare centers. We have investments or commitments in seventy-six properties located in twenty-one states.