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

Core Insights - Safehold (SAFE) and Essex Property Trust (ESS) are two stocks in the REIT and Equity Trust - Residential sector that are being compared for value investment opportunities [1] Valuation Metrics - SAFE has a forward P/E ratio of 9.18, while ESS has a forward P/E of 16.02, indicating that SAFE may be undervalued compared to ESS [5] - The PEG ratio for SAFE is 1.33, which is significantly lower than ESS's PEG ratio of 6.21, suggesting that SAFE offers better value when considering expected earnings growth [5] - SAFE's P/B ratio is 0.44, compared to ESS's P/B of 2.84, further highlighting SAFE's relative undervaluation [6] Investment Ratings - SAFE currently holds a Zacks Rank of 2 (Buy), while ESS has a Zacks Rank of 3 (Hold), indicating a more favorable outlook for SAFE among analysts [3] - The Value grades for SAFE and ESS are B and D, respectively, with SAFE being favored in both Zacks Rank and Style Scores models [6]