Smartstop Self Storage REIT (NYSE:SMA) versus Global Self Storage (NASDAQ:SELF) Critical Survey

Smartstop Self Storage REIT (NYSE:SMA) and Global Self Storage (NASDAQ:SELF) are both small-cap real estate companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Insider & Institutional Ownership

28.9% of Global Self Storage shares are held by institutional investors. 5.7% of Smartstop Self Storage REIT shares are held by insiders. Comparatively, 10.7% of Global Self Storage shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Smartstop Self Storage REIT pays an annual dividend of $1.63 per share and has a dividend yield of 5.0%. Global Self Storage pays an annual dividend of $0.29 per share and has a dividend yield of 5.6%. Smartstop Self Storage REIT pays out 319.6% 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 Self Storage pays out 161.1% 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 Self Storage is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Smartstop Self Storage REIT and Global Self 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%
Global Self Storage	16.64%	4.57%	3.32%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smartstop Self Storage REIT	1	4	4	2	2.64
Global Self Storage	0	0	1	0	3.00

Smartstop Self Storage REIT presently has a consensus price target of $36.86, indicating a potential upside of 13.04%. Given Smartstop Self Storage REIT’s higher probable upside, equities research analysts plainly believe Smartstop Self Storage REIT is more favorable than Global Self Storage.

Valuation & Earnings

This table compares Smartstop Self Storage REIT and Global Self Storage”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smartstop Self Storage REIT	$281.14 million	6.42	-$1.55 million	$0.51	63.94
Global Self Storage	$12.70 million	4.69	$2.04 million	$0.18	29.00

Global Self Storage has lower revenue, but higher earnings than Smartstop Self Storage REIT. Global Self 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.

Summary

Global Self Storage beats Smartstop Self Storage REIT on 9 of the 16 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 Global Self Storage

Global Self Storage is a self-administered and self-managed REIT that owns, operates, manages, acquires, and redevelops self-storage properties. The company's self-storage properties are designed to offer affordable, easily accessible and secure storage space for residential and commercial customers. Through its wholly owned subsidiaries, the company owns and/or manages 13 self-storage properties in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania, South Carolina, and Oklahoma.