Safehold (NYSE:SAFE) and Global Self Storage (NASDAQ:SELF) Financial Contrast

Safehold (NYSE:SAFE) and Global Self Storage (NASDAQ:SELF) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Risk and Volatility

Safehold has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500. Comparatively, Global Self Storage has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Safehold and Global Self Storage, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safehold	0	5	4	0	2.44
Global Self Storage	0	0	1	0	3.00

Safehold presently has a consensus target price of $25.56, suggesting a potential upside of 49.22%. Global Self Storage has a consensus target price of $6.50, suggesting a potential upside of 26.21%. Given Safehold’s higher probable upside, research analysts clearly believe Safehold is more favorable than Global Self Storage.

Valuation & Earnings

This table compares Safehold and Global Self Storage”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safehold	$365.68 million	3.35	-$54.97 million	$1.48	11.57
Global Self Storage	$12.19 million	4.76	$2.94 million	$0.27	19.07

Global Self Storage has lower revenue, but higher earnings than Safehold. Safehold is trading at a lower price-to-earnings ratio than Global Self Storage, indicating that it is currently the more affordable of the two stocks.

Dividends

Safehold pays an annual dividend of $0.71 per share and has a dividend yield of 4.1%. Global Self Storage pays an annual dividend of $0.29 per share and has a dividend yield of 5.6%. Safehold pays out 48.0% of its earnings in the form of a dividend. Global Self Storage pays out 107.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

70.4% of Safehold shares are held by institutional investors. Comparatively, 28.9% of Global Self Storage shares are held by institutional investors. 3.3% of Safehold shares are held by insiders. Comparatively, 8.0% of Global Self Storage 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 Global Self Storage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Safehold	28.92%	4.76%	1.65%
Global Self Storage	25.47%	6.55%	4.73%

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 Global Self Storage

Global Self Storage is a self-administered and self-managed REIT that owns, operates, manages, acquires, and redevelops self-storage properties. The company's self-storage properties are designed to offer affordable, easily accessible and secure storage space for residential and commercial customers. Through its wholly owned subsidiaries, the company owns and/or manages 13 self-storage properties in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania, South Carolina, and Oklahoma.