Financial Survey: Safestore (OTCMKTS:SFSHF) and Kennedy-Wilson (NYSE:KW)

Safestore (OTCMKTS:SFSHF) and Kennedy-Wilson (NYSE:KW) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Risk and Volatility

Safestore has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Kennedy-Wilson has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Earnings and Valuation

This table compares Safestore and Kennedy-Wilson”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safestore	$306.59 million	6.72	$145.42 million	N/A	N/A
Kennedy-Wilson	$501.00 million	3.06	$4.70 million	$0.11	100.14

Safestore has higher earnings, but lower revenue than Kennedy-Wilson.

Profitability

This table compares Safestore and Kennedy-Wilson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Safestore	N/A	N/A	N/A
Kennedy-Wilson	12.08%	23.82%	2.76%

Insider and Institutional Ownership

87.7% of Kennedy-Wilson shares are held by institutional investors. 22.7% of Kennedy-Wilson shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Safestore and Kennedy-Wilson, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safestore	1	1	1	0	2.00
Kennedy-Wilson	1	1	0	0	1.50

Kennedy-Wilson has a consensus target price of $11.00, suggesting a potential downside of 0.14%. Given Kennedy-Wilson’s higher possible upside, analysts plainly believe Kennedy-Wilson is more favorable than Safestore.

Summary

Kennedy-Wilson beats Safestore on 7 of the 12 factors compared between the two stocks.

About Safestore

Safestore is the UK’s largest self storage group with 190 stores on 31 October 2023, comprising 133 wholly owned stores in the UK (including 73 in London and the South East with the remainder in key metropolitan areas such as Manchester, Birmingham, Glasgow, Edinburgh, Liverpool, Sheffield, Leeds, Newcastle, and Bristol), 29 wholly owned stores in the Paris region, 11 stores in Spain, 11 stores in the Netherlands and 6 stores in Belgium. In addition, the Group operates 7 stores in Germany under a Joint Venture agreement with Carlyle. Safestore operates more self storage sites inside the M25 and in central Paris than any competitor providing more proximity to customers in the wealthiest and more densely populated UK and French markets. Safestore was founded in the UK in 1998. It acquired the French business “Une Pièce en Plus” (“UPP”) in 2004 which was founded in 1998 by the current Safestore Group CEO Frederic Vecchioli. Safestore has been listed on the London Stock Exchange since 2007. It entered the FTSE 250 index in October 2015. The Group provides storage to around 90,000 personal and business customers. As of 31 October 2023, Safestore had a maximum lettable area (“MLA”) of 8.090 million sq ft (excluding the expansion pipeline stores) of which 6.231 million sq ft was occupied. Safestore employs around 750 people in the UK, Paris, Spain, the Netherlands, and Belgium.

About Kennedy-Wilson

Kennedy-Wilson Holdings, Inc., together with its subsidiaries, operates as a real estate investment company. The company owns, operates, and invests in real estate both on its own and through its investment management platform. It focuses on multifamily and office properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy, and Japan. The company had ownership interests in multifamily units, office space, retail and industrial space, and a hotel. It is involved in the development, redevelopment, and entitlement of real estate properties. Kennedy-Wilson Holdings, Inc. was founded in 1977 and is headquartered in Beverly Hills, California.