Analyzing Safehold (NYSE:SAFE) & Mobile Infrastructure (NASDAQ:BEEP)

Mobile Infrastructure (NASDAQ:BEEP) and Safehold (NYSE:SAFE) are both small-cap real estate companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Risk and Volatility

Mobile Infrastructure has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Safehold has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500.

Valuation and Earnings

This table compares Mobile Infrastructure and Safehold”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mobile Infrastructure	$35.08 million	3.04	-$21.44 million	($0.60)	-4.30
Safehold	$385.55 million	2.75	$114.47 million	$1.62	9.23

Safehold has higher revenue and earnings than Mobile Infrastructure. Mobile Infrastructure is trading at a lower price-to-earnings ratio than Safehold, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Mobile Infrastructure and Safehold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mobile Infrastructure	-67.22%	-11.25%	-4.69%
Safehold	27.70%	4.76%	1.62%

Analyst Recommendations

This is a summary of current ratings and target prices for Mobile Infrastructure and Safehold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mobile Infrastructure	1	0	2	0	2.33
Safehold	1	6	2	0	2.11

Mobile Infrastructure currently has a consensus target price of $6.25, suggesting a potential upside of 142.25%. Safehold has a consensus target price of $17.17, suggesting a potential upside of 14.83%. Given Mobile Infrastructure’s stronger consensus rating and higher possible upside, research analysts clearly believe Mobile Infrastructure is more favorable than Safehold.

Insider and Institutional Ownership

84.3% of Mobile Infrastructure shares are held by institutional investors. Comparatively, 70.4% of Safehold shares are held by institutional investors. 36.6% of Mobile Infrastructure shares are held by insiders. Comparatively, 3.8% of Safehold shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Safehold beats Mobile Infrastructure on 8 of the 13 factors compared between the two stocks.

About Mobile Infrastructure

Mobile Infrastructure Corporation is a Maryland corporation. The Company owns a diversified portfolio of parking assets primarily located in the Midwest and Southwest. As of December 31, 2023, the Company owned 43 parking facilities in 21 separate markets throughout the United States, with a total of 15,700 parking spaces and approximately 5.4 million square feet. The Company also owns approximately 0.2 million square feet of retail/commercial space adjacent to its parking facilities.

About Safehold

Safehold Inc. (NYSE: SAFE) is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. Having created the modern ground lease industry in 2017, Safehold continues to help owners of high quality multifamily, office, industrial, hospitality, student housing, life science and mixed-use properties generate higher returns with less risk. The Company, which is taxed as a real estate investment trust (REIT), seeks to deliver safe, growing income and long-term capital appreciation to its shareholders.