Ellington Financial (NYSE:EFC) vs. Safe and Green Development (NASDAQ:SGD) Head to Head Review

Safe and Green Development (NASDAQ:SGD) and Ellington Financial (NYSE:EFC) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.

Profitability

This table compares Safe and Green Development and Ellington Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Safe and Green Development	N/A	-275.24%	-66.07%
Ellington Financial	103.55%	9.76%	0.75%

Analyst Ratings

This is a summary of current recommendations and price targets for Safe and Green Development and Ellington Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safe and Green Development	0	0	0	0	N/A
Ellington Financial	0	2	4	0	2.67

Ellington Financial has a consensus target price of $13.85, suggesting a potential upside of 5.64%. Given Ellington Financial’s higher possible upside, analysts clearly believe Ellington Financial is more favorable than Safe and Green Development.

Earnings and Valuation

This table compares Safe and Green Development and Ellington Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safe and Green Development	$91,978.00	43.17	-$4.20 million	N/A	N/A
Ellington Financial	$282.97 million	3.94	$84.81 million	$0.64	20.48

Ellington Financial has higher revenue and earnings than Safe and Green Development.

Institutional and Insider Ownership

2.6% of Safe and Green Development shares are owned by institutional investors. Comparatively, 55.6% of Ellington Financial shares are owned by institutional investors. 10.1% of Safe and Green Development shares are owned by insiders. Comparatively, 4.4% of Ellington Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Ellington Financial beats Safe and Green Development on 8 of the 10 factors compared between the two stocks.

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.

About Ellington Financial

Ellington Financial Inc., through its subsidiary, Ellington Financial Operating Partnership LLC, acquires and manages mortgage-related, consumer-related, corporate-related, and other financial assets in the United States. The company acquires and manages residential mortgage-backed securities (RMBS) backed by prime jumbo, Alt-A, manufactured housing, and subprime mortgage; RMBS for which the principal and interest payments are guaranteed by the U.S. government agency or the U.S. government-sponsored entity; residential mortgage loans; commercial mortgage-backed securities; and commercial mortgage loans and other commercial real estate debt. It also provides collateralized loan obligations; mortgage-related and non-mortgage-related derivatives; corporate debt and equity securities; corporate loans; and other strategic investments; and consumer loans and asset-backed securities backed by consumer and commercial assets. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, it intends to distribute at least 90% of its taxable income as dividends to shareholders. Ellington Financial LLC was incorporated in 2007 and is headquartered in Old Greenwich, Connecticut.