Reviewing Camden Property Trust (NYSE:CPT) & Safehold (NYSE:SAFE)

Safehold (NYSE:SAFE) and Camden Property Trust (NYSE:CPT) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Profitability

This table compares Safehold and Camden Property Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Safehold	27.45%	4.70%	1.61%
Camden Property Trust	9.99%	3.30%	1.74%

Dividends

Safehold pays an annual dividend of $0.70 per share and has a dividend yield of 5.3%. Camden Property Trust pays an annual dividend of $4.20 per share and has a dividend yield of 4.1%. Safehold pays out 49.0% of its earnings in the form of a dividend. Camden Property Trust pays out 170.0% 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 has raised its dividend for 1 consecutive years and Camden Property Trust has raised its dividend for 4 consecutive years. Safehold is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Safehold has a beta of 1.87, suggesting that its stock price is 87% more volatile than the S&P 500. Comparatively, Camden Property Trust has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

Earnings & Valuation

This table compares Safehold and Camden Property Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safehold	$374.10 million	2.54	$105.76 million	$1.43	9.27
Camden Property Trust	$1.57 billion	6.93	$163.29 million	$2.47	41.20

Camden Property Trust has higher revenue and earnings than Safehold. Safehold is trading at a lower price-to-earnings ratio than Camden Property Trust, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

70.4% of Safehold shares are held by institutional investors. Comparatively, 97.2% of Camden Property Trust shares are held by institutional investors. 3.5% of Safehold shares are held by company insiders. Comparatively, 1.8% of Camden Property Trust shares are held 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.

Analyst Ratings

This is a summary of recent recommendations and price targets for Safehold and Camden Property Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safehold	0	7	3	0	2.30
Camden Property Trust	2	9	6	0	2.24

Safehold presently has a consensus price target of $19.56, indicating a potential upside of 47.53%. Camden Property Trust has a consensus price target of $120.05, indicating a potential upside of 17.97%. Given Safehold’s stronger consensus rating and higher possible upside, equities analysts clearly believe Safehold is more favorable than Camden Property Trust.

Summary

Camden Property Trust beats Safehold on 9 of the 17 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 Camden Property Trust

Camden Property Trust, an S&P 500 Company, is a real estate company primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns and operates 172 properties containing 58,250 apartment homes across the United States. Upon completion of 5 properties currently under development, the Company’s portfolio will increase to 59,996 apartment homes in 177 properties. Camden has been recognized as one of the 100 Best Companies to Work For by FORTUNE magazine for 17 consecutive years, most recently ranking #24.