Analyzing Safe and Green Development (NASDAQ:SGD) & Armada Hoffler Properties (NYSE:AHH)

Armada Hoffler Properties (NYSE:AHH) and Safe and Green Development (NASDAQ:SGD) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Profitability

This table compares Armada Hoffler Properties and Safe and Green Development’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Armada Hoffler Properties	5.99%	5.96%	1.66%
Safe and Green Development	N/A	-492.68%	-76.18%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Armada Hoffler Properties and Safe and Green Development, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Armada Hoffler Properties	0	2	1	0	2.33
Safe and Green Development	0	0	0	0	0.00

Armada Hoffler Properties presently has a consensus price target of $11.25, indicating a potential upside of 72.15%. Given Armada Hoffler Properties’ stronger consensus rating and higher probable upside, research analysts clearly believe Armada Hoffler Properties is more favorable than Safe and Green Development.

Volatility & Risk

Armada Hoffler Properties has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Safe and Green Development has a beta of 3.29, meaning that its share price is 229% more volatile than the S&P 500.

Institutional and Insider Ownership

66.3% of Armada Hoffler Properties shares are owned by institutional investors. Comparatively, 2.6% of Safe and Green Development shares are owned by institutional investors. 11.9% of Armada Hoffler Properties shares are owned by company insiders. Comparatively, 9.6% of Safe and Green Development shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Armada Hoffler Properties and Safe and Green Development”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Armada Hoffler Properties	$708.47 million	0.93	$42.45 million	$0.32	20.42
Safe and Green Development	$207,552.00	11.35	-$4.20 million	N/A	N/A

Armada Hoffler Properties has higher revenue and earnings than Safe and Green Development.

Summary

Armada Hoffler Properties beats Safe and Green Development on 10 of the 12 factors compared between the two stocks.

About Armada Hoffler Properties

Armada Hoffler Properties, Inc. (the “Company”) is a vertically integrated, self-managed real estate investment trust (“REIT”) with over four decades of experience developing, building, acquiring, and managing high-quality retail, office, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to the ownership of the Company’s operating property portfolio, the Company develops and builds properties for its own account and through joint ventures between the Company and unaffiliated partners and also invests in development projects through real estate financing arrangements. The Company also provides general construction and development services to third-party clients. The Company’s construction and development experience includes mid- and high-rise office buildings, retail strip malls, retail power centers, multifamily apartment communities, hotels and conference centers, single- and multi-tenant industrial, distribution, and manufacturing facilities, educational, medical, and special purpose facilities, government projects, parking garages, and mixed-use town centers. The Company is the sole general partner of Armada Hoffler, L.P. (the “Operating Partnership”) and, as of March 31, 2024, owned 75.5% of the economic interest in the Operating Partnership, of which 0.1% is held as general partnership units. The operations of the Company are conducted primarily through the Operating Partnership and the wholly owned subsidiaries thereof.

About Safe and Green Development

Safe and Green Development Corporation operates as a real estate development company. It focuses on building single and multifamily projects. The company was formerly known as SGB Development Corp. and changed its name to Safe and Green Development Corporation in December 2022. The company was incorporated in 2021 and is based in Miami, Florida. Safe and Green Development Corporation is a subsidiary of Safe & Green Holdings Corp.