Critical Analysis: Safe and Green Development (NASDAQ:SGD) and Office Properties Income Trust (NASDAQ:OPI)

Office Properties Income Trust (NASDAQ:OPI) and Safe and Green Development (NASDAQ:SGD) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Volatility and Risk

Office Properties Income Trust has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, Safe and Green Development has a beta of 5.15, suggesting that its stock price is 415% more volatile than the S&P 500.

Profitability

This table compares Office Properties Income Trust and Safe and Green Development’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Office Properties Income Trust	-27.11%	-10.86%	-3.56%
Safe and Green Development	N/A	-492.68%	-76.18%

Earnings & Valuation

This table compares Office Properties Income Trust and Safe and Green Development”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Office Properties Income Trust	$501.98 million	0.13	-$136.11 million	($2.20)	-0.41
Safe and Green Development	$173,188.00	11.16	-$4.20 million	N/A	N/A

Safe and Green Development has lower revenue, but higher earnings than Office Properties Income Trust.

Analyst Ratings

This is a summary of current recommendations and price targets for Office Properties Income Trust and Safe and Green Development, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Office Properties Income Trust	1	0	1	0	2.00
Safe and Green Development	0	0	0	0	0.00

Office Properties Income Trust currently has a consensus target price of $4.30, suggesting a potential upside of 371.18%. Given Office Properties Income Trust’s stronger consensus rating and higher probable upside, equities analysts plainly believe Office Properties Income Trust is more favorable than Safe and Green Development.

Institutional and Insider Ownership

64.4% of Office Properties Income Trust shares are owned by institutional investors. Comparatively, 2.6% of Safe and Green Development shares are owned by institutional investors. 2.0% of Office Properties Income Trust shares are owned by insiders. Comparatively, 9.6% of Safe and Green Development shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Office Properties Income Trust beats Safe and Green Development on 7 of the 12 factors compared between the two stocks.

About Office Properties Income Trust

Office Properties Income Trust is a real estate investment trust. It owns, operates, and leases office buildings to single tenants and multi-tenant buildings. The company was founded on February 17, 2009 and is headquartered in Newton, MA.

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.