CubeSmart (NYSE: CUBE) and National Storage Affiliates Trust (NYSE:NSA) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitabiliy and risk.
This table compares CubeSmart and National Storage Affiliates Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National Storage Affiliates Trust||7.38%||1.94%||0.97%|
This is a summary of recent ratings and price targets for CubeSmart and National Storage Affiliates Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Storage Affiliates Trust||0||1||2||0||2.67|
CubeSmart presently has a consensus price target of $30.13, suggesting a potential upside of 26.79%. National Storage Affiliates Trust has a consensus price target of $25.67, suggesting a potential upside of 14.48%. Given CubeSmart’s higher possible upside, equities research analysts clearly believe CubeSmart is more favorable than National Storage Affiliates Trust.
Volatility & Risk
CubeSmart has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500. Comparatively, National Storage Affiliates Trust has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.
Insider & Institutional Ownership
89.1% of National Storage Affiliates Trust shares are held by institutional investors. 1.2% of CubeSmart shares are held by insiders. Comparatively, 17.7% of National Storage Affiliates Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares CubeSmart and National Storage Affiliates Trust’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CubeSmart||$521.28 million||8.21||$316.69 million||$0.51||46.59|
|National Storage Affiliates Trust||$218.69 million||4.54||$123.05 million||$0.16||140.13|
CubeSmart has higher revenue and earnings than National Storage Affiliates Trust. CubeSmart is trading at a lower price-to-earnings ratio than National Storage Affiliates Trust, indicating that it is currently the more affordable of the two stocks.
CubeSmart pays an annual dividend of $1.08 per share and has a dividend yield of 4.5%. National Storage Affiliates Trust pays an annual dividend of $1.04 per share and has a dividend yield of 4.6%. CubeSmart pays out 211.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Storage Affiliates Trust pays out 650.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Storage Affiliates Trust has increased its dividend for 5 consecutive years. National Storage Affiliates Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
CubeSmart beats National Storage Affiliates Trust on 10 of the 17 factors compared between the two stocks.
CubeSmart Company Profile
CubeSmart operates as a self-managed and self-administered real estate company. The Company focuses on the ownership, operation, management, acquisition and development of self-storage properties in the United States. Its self-storage properties are designed to offer storage space for its residential and commercial customers. Its storage facilities offer lockers, mini storage units and large 10 feet x 30 feet storage rooms. The Company offers various storage options, including household and personal storage, business storage, vehicle and car storage, recreational vehicle (RV) storage, boat storage, motorcycle storage, moving storage and military storage. It also offers CubeSmart Services. As of December 31, 2016, the Company owned 475 self-storage properties located in 23 states and in the District of Columbia. In addition, as of December 31, 2016, it had managed 316 stores for third parties. Its self-storage properties are located in metropolitan areas, as well as suburban areas.
National Storage Affiliates Trust Company Profile
National Storage Affiliates Trust is an integrated, self-administered and self-managed real estate investment trust. The Company is focused on the ownership, operation and acquisition of self-storage properties located within various metropolitan statistical areas (MSAs) across the United States. The Company’s operating partnership subsidiary is NSA OP, LP. As of December 31, 2016, the Company held ownership interests in and operated a geographically diversified portfolio of 448 self storage properties, located in 23 states, comprising approximately 27.6 million rentable square feet, configured in approximately 220,000 storage units. The Company’s self-storage properties are located in various states of the United States, such as California, Florida, Indiana, Ohio, Louisiana, Oregon, New Hampshire, Oklahoma, Texas, Nevada, New Mexico, Arizona, Colorado and Georgia.
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