Reviewing Smartstop Self Storage REIT (NYSE:SMA) & Public Storage (NYSE:PSA)

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

Profitability

This table compares Smartstop Self Storage REIT and Public Storage’s 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%
Public Storage 41.80% 40.98% 10.19%

Analyst Ratings

This is a summary of current recommendations and price targets for Smartstop Self Storage REIT and Public Storage, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Smartstop Self Storage REIT 1 5 3 2 2.55
Public Storage 0 14 7 0 2.33

Smartstop Self Storage REIT currently has a consensus target price of $36.42, indicating a potential upside of 2.21%. Public Storage has a consensus target price of $323.42, indicating a potential upside of 4.26%. Given Public Storage’s higher possible upside, analysts clearly believe Public Storage is more favorable than Smartstop Self Storage REIT.

Insider and Institutional Ownership

78.8% of Public Storage shares are held by institutional investors. 5.7% of Smartstop Self Storage REIT shares are held by company insiders. Comparatively, 11.1% of Public Storage shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Smartstop Self Storage REIT has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Public Storage has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Valuation & Earnings

This table compares Smartstop Self Storage REIT and Public Storage”s 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 7.02 -$1.55 million $0.51 69.86
Public Storage $4.82 billion 11.29 $1.78 billion $10.48 29.60

Public Storage has higher revenue and earnings than Smartstop Self Storage REIT. Public Storage 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.

Dividends

Smartstop Self Storage REIT pays an annual dividend of $1.58 per share and has a dividend yield of 4.4%. Public Storage pays an annual dividend of $12.00 per share and has a dividend yield of 3.9%. 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. Public Storage pays out 114.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Public Storage beats Smartstop Self Storage REIT on 13 of the 17 factors compared between the two stocks.

About Smartstop Self Storage REIT

(Get Free Report)

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 Public Storage

(Get Free Report)

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.

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