Contrasting Universal Health Realty Income Trust (NYSE:UHT) & 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 investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

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%

Insider & Institutional Ownership

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

Risk and Volatility

Safehold has a beta of 1.66, suggesting 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, suggesting that its stock price is 16% less volatile than the S&P 500.

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 $2.94 per share and has a dividend yield of 7.3%. Safehold pays out 41.8% of its earnings in the form of a dividend. Universal Health Realty Income Trust pays out 224.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safehold	$352.58 million	4.33	-$54.97 million	$1.70	12.56
Universal Health Realty Income Trust	$98.69 million	5.64	$15.40 million	$1.31	30.69

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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Safehold and Universal Health Realty Income Trust, as provided by MarketBeat.

	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 presently has a consensus price target of $28.22, indicating a potential upside of 32.19%. Given Safehold’s stronger consensus rating and higher possible upside, equities analysts plainly believe Safehold is more favorable than Universal Health Realty Income Trust.

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.