Safetyome & Growth (NASDAQ: SAFE) and Sutherland Asset Management Corp. (NYSE:SLD) are both small-cap financials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Safetyome & Growth and Sutherland Asset Management Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Safetyome & Growth -31.66% -4.24% -1.54%
Sutherland Asset Management Corp. 42.38% 8.19% 1.83%

Institutional and Insider Ownership

30.2% of Sutherland Asset Management Corp. shares are owned by institutional investors. 2.4% of Sutherland Asset Management Corp. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Safetyome & Growth and Sutherland Asset Management Corp.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Safetyome & Growth $22.71 million 15.84 $18.04 million N/A N/A
Sutherland Asset Management Corp. $124.55 million 4.01 $61.43 million $1.92 8.13

Sutherland Asset Management Corp. has higher revenue and earnings than Safetyome & Growth.

Dividends

Sutherland Asset Management Corp. pays an annual dividend of $1.48 per share and has a dividend yield of 9.5%. Safetyome & Growth does not pay a dividend. Sutherland Asset Management Corp. pays out 77.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of current ratings and target prices for Safetyome & Growth and Sutherland Asset Management Corp., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Safetyome & Growth 0 5 1 0 2.17
Sutherland Asset Management Corp. 0 0 1 0 3.00

Safetyome & Growth presently has a consensus price target of $20.80, indicating a potential upside of 5.16%. Sutherland Asset Management Corp. has a consensus price target of $16.00, indicating a potential upside of 2.56%. Given Safetyome & Growth’s higher probable upside, research analysts clearly believe Safetyome & Growth is more favorable than Sutherland Asset Management Corp..

Summary

Sutherland Asset Management Corp. beats Safetyome & Growth on 9 of the 13 factors compared between the two stocks.

About Safetyome & Growth

Safety, Income and Growth, Inc. is formed primarily to acquire, own, manage, finance and capitalize ground net leases (GNLs). The Company’s portfolio consists of 12 properties, which includes Doubletree Seattle Airport, One Ally Center, Hilton Salt Lake, Doubletree Mission Valley, Doubletree Sonoma, Doubletree Durango, Dallas Market Center: Sheraton Suites, Northside Forsyth Hospital Medical Center, NASA/JPSS Headquarters, The Buckler Apartments, Dallas Market Center: Marriott Courtyard and Lock Up Self Storage Facility.

About Sutherland Asset Management Corp.

Sutherland Asset Management Corporation, formerly ZAIS Financial Corp., is a diversified mortgage real estate investment trust (REIT). The Company originates, acquires, finances, services and manages small balance commercial loans (SBC) and Small Business Administration (SBA) loans. The Company focuses on maintaining its existing residential mortgage origination platform, GMFS. The Company originates SBC and SBA loans through its ReadyCap subsidiaries. The Company also invests in asset-backed securities, where the underlying pool of assets consists primarily of SBC loans, and other real estate-related investments. The Company is managed and advised by Waterfall Asset Management, LLC.

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