SAFE vs. AMH: Which Stock Is the Better Value Option?

Core Viewpoint - The comparison between Safehold (SAFE) and American Homes 4 Rent (AMH) indicates that SAFE currently offers better value for investors based on various financial metrics and rankings [1][3]. Group 1: Zacks Rank and Earnings Outlook - Safehold has a Zacks Rank of 2 (Buy), while American Homes 4 Rent has a Zacks Rank of 3 (Hold), suggesting a stronger earnings outlook for SAFE [3]. - The Zacks Rank emphasizes stocks with positive revisions to earnings estimates, indicating an improving earnings outlook for SAFE [3]. Group 2: Valuation Metrics - SAFE has a forward P/E ratio of 10.18, significantly lower than AMH's forward P/E of 18.66, indicating that SAFE may be undervalued [5]. - The PEG ratio for SAFE is 1.48, while AMH's PEG ratio is 2.93, suggesting that SAFE has a more favorable valuation relative to its expected earnings growth [5]. - SAFE's P/B ratio is 0.49, compared to AMH's P/B of 1.64, further indicating that SAFE is trading at a lower valuation relative to its book value [6]. Group 3: Value Grades - SAFE has earned a Value grade of B, while AMH has a Value grade of D, highlighting the relative attractiveness of SAFE for value investors [6]. - The combination of Zacks Rank and Style Scores indicates that SAFE stands out as the better investment option compared to AMH [6].