Gladstone Commercial Corporation (GOOD) vs Safehold Inc. (SAFE)

Gladstone Commercial Corporation and Safehold Inc. are both Reit Diversified companies. Safehold Inc. is the larger, with a market value of $876.7M against $612.7M — 1.4× the size. Safehold Inc. trades at the lower P/E: 7.6× against 48.1×. Safehold Inc. grew revenue faster over the last twelve months: 12.2% against 10.8%. Safehold Inc. has the higher net margin (27.7% vs 7.15%) and the higher return on invested capital (5.53% vs 4.14%). Both pay a dividend; Gladstone Commercial Corporation yields more (9.44% vs 3.44%). Across the 22 metrics below, Safehold Inc. leads on 16 and Gladstone Commercial Corporation on 6.

Valuation

Metric GOOD SAFE Reit Diversified median
P/E 48.08 7.57 23.72
P/S 3.58 2.09 3.28
P/B 3.87 0.33 0.87
Price to free cash flow n/m n/m 9.21
EV/EBITDA 11.71 5.45 11.57
EV/Sales 8.55 4.36 6.64
Earnings yield 2.08% 13.21% 1.04%
Free cash flow yield (1.02%) (15.93%) 0.16%

Profitability

Metric GOOD SAFE Reit Diversified median
Gross margin 79.10% 92.63% 77.09%
Operating margin 38.97% 75.61% 33.33%
Net margin 7.15% 27.69% 2.62%
Free cash flow margin (3.66%) (33.27%) 3.11%
Return on equity 7.27% 4.61% 3.13%
Return on assets 0.99% 1.59% 0.35%
Return on invested capital 4.14% 5.53% 2.80%

Growth

Metric GOOD SAFE Reit Diversified median
Revenue growth (TTM) 10.78% 12.15% 5.49%
EPS growth (last fiscal year) (46.15%) 7.43% —
Revenue growth, 5-year CAGR 3.91% 3.53% 4.83%
Net income growth, 5-year CAGR 15.92% 0.00% 0.00%

Health

Metric GOOD SAFE Reit Diversified median
Debt to equity 5.43 1.77 1.13
Current ratio 3.72 34.36 1.47
Net debt to EBITDA 7.29 3.00 5.88

Dividend

Metric GOOD SAFE Reit Diversified median
Dividend yield 9.44% 3.44% 7.13%
Payout ratio 75.18 7.14 1.37

Size

Metric GOOD SAFE Reit Diversified median
Market cap 612.66m 876.71m 729.58m

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