UDR (NYSE:UDR – Get Free Report) and Safehold (NYSE:SAFE – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.
Profitability
This table compares UDR and Safehold’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| UDR | 7.68% | 3.57% | 1.19% |
| Safehold | 32.08% | 4.79% | 1.66% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for UDR and Safehold, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| UDR | 1 | 7 | 8 | 0 | 2.44 |
| Safehold | 0 | 4 | 5 | 0 | 2.56 |
Insider & Institutional Ownership
97.8% of UDR shares are held by institutional investors. Comparatively, 70.4% of Safehold shares are held by institutional investors. 3.7% of UDR shares are held by company insiders. Comparatively, 3.3% of Safehold shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
UDR has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Safehold has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500.
Dividends
UDR pays an annual dividend of $1.70 per share and has a dividend yield of 3.9%. Safehold pays an annual dividend of $0.70 per share and has a dividend yield of 3.6%. UDR pays out 459.5% 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 41.2% of its earnings in the form of a dividend. UDR has increased its dividend for 14 consecutive years. UDR is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares UDR and Safehold”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| UDR | $1.66 billion | 8.63 | $444.35 million | $0.37 | 117.46 |
| Safehold | $376.84 million | 3.70 | -$54.97 million | $1.70 | 11.48 |
UDR has higher revenue and earnings than Safehold. Safehold is trading at a lower price-to-earnings ratio than UDR, indicating that it is currently the more affordable of the two stocks.
Summary
UDR beats Safehold on 9 of the 17 factors compared between the two stocks.
About UDR
UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. As of December 31, 2023, UDR owned or had an ownership position in 60,336 apartment homes including 359 homes under development. For over 51 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.
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.
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