ZACKS·2025-10-29 16:41Core Viewpoint - Investors are evaluating Safehold (SAFE) and American Homes 4 Rent (AMH) to determine which stock offers better value opportunities at present [1] Group 1: Zacks Rank and Earnings Outlook - SAFE has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while AMH has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that SAFE has an improving earnings outlook [3][4] Group 2: Valuation Metrics - SAFE has a forward P/E ratio of 9.71, significantly lower than AMH's forward P/E of 17.47 [5] - SAFE's PEG ratio is 1.41, while AMH's PEG ratio is 2.98, indicating that SAFE is expected to grow earnings at a more favorable rate relative to its price [5] - SAFE's P/B ratio is 0.47, compared to AMH's P/B of 1.54, further highlighting SAFE's undervaluation [6] Group 3: Value Grades - Based on the valuation metrics, SAFE earns a Value grade of A, while AMH receives a Value grade of C [6] - The combination of a solid earnings outlook and favorable valuation figures positions SAFE as the superior value option compared to AMH [6]