Smartstop Self Storage REIT (SMA) and Its Rivals Critical Review

Smartstop Self Storage REIT (NYSE:SMA) is one of 35 public companies in the “Specialized REITs” industry, but how does it weigh in compared to its rivals? We will compare Smartstop Self Storage REIT to related businesses based on the strength of its earnings, valuation, institutional ownership, dividends, profitability, risk and analyst recommendations.

Dividends

Smartstop Self Storage REIT pays an annual dividend of $1.57 per share and has a dividend yield of 4.0%. Smartstop Self Storage REIT pays out 270.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Specialized REITs” companies pay a dividend yield of 3.3% and pay out 120.4% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and price targets for Smartstop Self Storage REIT and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smartstop Self Storage REIT	1	6	4	2	2.54
Smartstop Self Storage REIT Competitors	521	2788	3668	191	2.49

Smartstop Self Storage REIT presently has a consensus price target of $37.25, suggesting a potential downside of 4.15%. As a group, “Specialized REITs” companies have a potential upside of 12.15%. Given Smartstop Self Storage REIT’s rivals higher probable upside, analysts plainly believe Smartstop Self Storage REIT has less favorable growth aspects than its rivals.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Smartstop Self Storage REIT	10.52%	2.64%	1.37%
Smartstop Self Storage REIT Competitors	-4.53%	-3.15%	2.04%

Volatility & Risk

Smartstop Self Storage REIT has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500. Comparatively, Smartstop Self Storage REIT’s rivals have a beta of 0.92, suggesting that their average share price is 8% less volatile than the S&P 500.

Earnings & Valuation

This table compares Smartstop Self Storage REIT and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Smartstop Self Storage REIT	$317.81 million	-$1.55 million	67.00
Smartstop Self Storage REIT Competitors	$2.70 billion	$596.00 million	31.92

Smartstop Self Storage REIT’s rivals have higher revenue and earnings than Smartstop Self Storage REIT. Smartstop Self Storage REIT is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

78.0% of shares of all “Specialized REITs” companies are owned by institutional investors. 5.7% of Smartstop Self Storage REIT shares are owned by insiders. Comparatively, 7.5% of shares of all “Specialized REITs” companies are owned 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.

Summary

Smartstop Self Storage REIT rivals beat Smartstop Self Storage REIT on 9 of the 15 factors compared.

About Smartstop Self Storage REIT

SmartStop Self Storage REIT, Inc. is a real estate investment trust that owns and operates self-storage properties. Its facilities provide storage space for household and business customers, with services that may include online rentals and the sale of moving and packing supplies. The company’s portfolio serves customers in the United States and Canada. SmartStop also acquires and develops self-storage properties as part of its strategy to expand its operations. SmartStop was founded by H. Michael Schwartz, who has served as the company’s chief executive officer.