SAFE or ESS: Which Is the Better Value Stock Right Now?

Core Viewpoint - Safehold (SAFE) is currently positioned as a more attractive investment option compared to Essex Property Trust (ESS) for value investors based on various financial metrics and earnings outlook improvements [3][7]. Valuation Metrics - SAFE has a forward P/E ratio of 9.53, significantly lower than ESS's forward P/E of 16.51, indicating that SAFE may be undervalued relative to its earnings potential [5]. - The PEG ratio for SAFE is 1.38, while ESS has a PEG ratio of 6.77, suggesting that SAFE offers better value when considering expected earnings growth [5]. - SAFE's P/B ratio stands at 0.46, compared to ESS's P/B of 2.92, further highlighting SAFE's more favorable valuation [6]. Earnings Outlook - SAFE has experienced stronger estimate revision activity, indicating a more positive earnings outlook compared to ESS [3][7]. - The Zacks Rank for SAFE is 2 (Buy), while ESS holds a Zacks Rank of 3 (Hold), reflecting a stronger investment sentiment towards SAFE [3]. Value Grades - SAFE has a Value grade of B, whereas ESS has a Value grade of D, underscoring the relative attractiveness of SAFE for value investors [6].