iStar Financial (NYSE: STAR) and Safety, Income and Growth (NYSE:SAFE) are both small-cap financials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for iStar Financial and Safety, Income and Growth, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
iStar Financial 0 2 0 0 2.00
Safety, Income and Growth 0 5 1 0 2.17

iStar Financial currently has a consensus price target of $14.00, indicating a potential upside of 23.89%. Safety, Income and Growth has a consensus price target of $20.58, indicating a potential upside of 11.97%. Given iStar Financial’s higher possible upside, analysts clearly believe iStar Financial is more favorable than Safety, Income and Growth.

Profitability

This table compares iStar Financial and Safety, Income and Growth’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
iStar Financial 24.13% 19.57% 3.97%
Safety, Income and Growth N/A N/A N/A

Insider & Institutional Ownership

86.1% of iStar Financial shares are held by institutional investors. Comparatively, 44.2% of Safety, Income and Growth shares are held by institutional investors. 4.4% of iStar Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares iStar Financial and Safety, Income and Growth’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
iStar Financial $477.03 million 1.62 $95.30 million ($0.53) -21.32
Safety, Income and Growth N/A N/A N/A N/A N/A

iStar Financial has higher revenue and earnings than Safety, Income and Growth.

Summary

iStar Financial beats Safety, Income and Growth on 7 of the 9 factors compared between the two stocks.

About iStar Financial

iStar Inc. finances, invests in and develops real estate and real estate related projects as part of its integrated investment platform. The Company’s four business segments are Real Estate Finance, Net Lease, Operating Properties, and Land and Development. The Real Estate Finance portfolio consists of senior and mezzanine real estate loans that may be either fixed-rate or variable-rate. The Net Lease portfolio consists of properties owned by the Company and leased to single tenants, where the properties are subject to long-term leases. The Operating Properties portfolio consists of commercial and residential properties, which represent a pool of assets across a range of geographies and property types. The Land and Development portfolio consists of land entitled for master planned communities, as well as waterfront and urban infill land parcels located throughout the United States. Its Land and Development projects include Great Oaks, Sage Scottsdale, Naples Reserve and Coney Island.

About Safety, Income and 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.

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