Critical Survey: Public Storage (NYSE:PSA) and Global Medical REIT (NYSE:GMRE)

Public Storage (NYSE:PSA) and Global Medical REIT (NYSE:GMRE) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.

Risk & Volatility

Public Storage has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Earnings and Valuation

This table compares Public Storage and Global Medical REIT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Public Storage	$4.68 billion	11.07	$2.15 billion	$9.63	30.70
Global Medical REIT	$136.39 million	3.73	$20.61 million	($0.02)	-380.50

Public Storage has higher revenue and earnings than Global Medical REIT. Global Medical REIT is trading at a lower price-to-earnings ratio than Public Storage, indicating that it is currently the more affordable of the two stocks.

Dividends

Public Storage pays an annual dividend of $12.00 per share and has a dividend yield of 4.1%. Global Medical REIT pays an annual dividend of $0.84 per share and has a dividend yield of 11.0%. Public Storage pays out 124.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Global Medical REIT pays out -4,200.0% of its earnings in the form of a dividend. Global Medical REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

78.8% of Public Storage shares are owned by institutional investors. Comparatively, 57.5% of Global Medical REIT shares are owned by institutional investors. 11.0% of Public Storage shares are owned by company insiders. Comparatively, 8.2% of Global Medical REIT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Public Storage and Global Medical REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Public Storage	40.54%	34.07%	9.60%
Global Medical REIT	3.23%	0.86%	0.35%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Public Storage and Global Medical REIT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Public Storage	1	6	6	2	2.60
Global Medical REIT	0	0	3	0	3.00

Public Storage currently has a consensus target price of $342.07, suggesting a potential upside of 15.70%. Global Medical REIT has a consensus target price of $11.25, suggesting a potential upside of 47.83%. Given Global Medical REIT’s stronger consensus rating and higher possible upside, analysts clearly believe Global Medical REIT is more favorable than Public Storage.

Summary

Public Storage beats Global Medical REIT on 12 of the 17 factors compared between the two stocks.

About Public Storage

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At December 31, 2023, we had: (i) interests in 3,044 self-storage facilities located in 40 states with approximately 218 million net rentable square feet in the United States and (ii) a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels: SHUR), which owned 275 self-storage facilities located in seven Western European nations with approximately 15 million net rentable square feet operated under the Shurgard brand. Our headquarters are located in Glendale, California.

About Global Medical REIT

Global Medical REIT Inc. (GMRE) is a net-lease medical office real estate investment trust (REIT) that owns and acquires healthcare facilities and leases those facilities to physician groups and regional and national healthcare systems.