Financial Analysis: EPR Properties (NYSE:EPR) vs. Smartstop Self Storage REIT (NYSE:SMA)

Smartstop Self Storage REIT (NYSE:SMA) and EPR Properties (NYSE:EPR) are both real estate companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Valuation & Earnings

This table compares Smartstop Self Storage REIT and EPR Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smartstop Self Storage REIT	$281.14 million	6.40	-$1.55 million	$0.51	63.74
EPR Properties	$718.36 million	6.02	$274.94 million	$3.11	18.16

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Smartstop Self Storage REIT and EPR Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smartstop Self Storage REIT	1	5	3	2	2.55
EPR Properties	0	4	9	0	2.69

Smartstop Self Storage REIT presently has a consensus target price of $36.42, suggesting a potential upside of 12.03%. EPR Properties has a consensus target price of $66.15, suggesting a potential upside of 17.09%. Given EPR Properties’ stronger consensus rating and higher probable upside, analysts clearly believe EPR Properties is more favorable than Smartstop Self Storage REIT.

Profitability

This table compares Smartstop Self Storage REIT and EPR Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smartstop Self Storage REIT	9.68%	2.33%	1.23%
EPR Properties	35.45%	11.34%	4.58%

Risk & Volatility

Smartstop Self Storage REIT has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, EPR Properties has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Insider and Institutional Ownership

74.7% of EPR Properties shares are held by institutional investors. 5.7% of Smartstop Self Storage REIT shares are held by insiders. Comparatively, 0.0% of EPR Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Smartstop Self Storage REIT pays an annual dividend of $1.58 per share and has a dividend yield of 4.9%. EPR Properties pays an annual dividend of $3.72 per share and has a dividend yield of 6.6%. Smartstop Self Storage REIT pays out 309.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EPR Properties pays out 119.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EPR Properties has raised its dividend for 1 consecutive years. EPR Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

EPR Properties beats Smartstop Self Storage REIT on 14 of the 18 factors compared between the two stocks.

About Smartstop Self Storage REIT

Symmetry Medical Inc. (Symmetry) is a medical device solutions company, including surgical instruments, orthopedic implants, and sterilization cases and trays. The Company designs, develops and offers worldwide production and supply chain capabilities for these products to customers in the orthopedic industry, and other medical device markets (including but not limited to arthroscopy, dental, laparoscopy, osteobiologic, and endoscopy segments). It also manufactures specialized non-healthcare products, primarily in the aerospace industry. The Company operates in two segments: original equipment manufacturer (OEM) solutions and symmetry surgical. On August 15, 2011, the Company acquired PSC Industries, Inc’s Olsen Medical division. On December 29, 2011 it acquired the surgical instruments product portfolio from Codman & Shurtleff, Inc., a Johnson & Johnson Company.

About EPR Properties

EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues that create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately $5.7 billion (after accumulated depreciation of approximately $1.4 billion) across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.