National Storage Affiliates Trust (NYSE: NSA) and Education Realty Trust (NYSE:EDR) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.
This table compares National Storage Affiliates Trust and Education Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National Storage Affiliates Trust||1.10%||0.30%||0.14%|
|Education Realty Trust||14.33%||2.62%||1.66%|
This is a summary of recent ratings and price targets for National Storage Affiliates Trust and Education Realty Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Storage Affiliates Trust||0||5||3||0||2.38|
|Education Realty Trust||2||5||6||0||2.31|
National Storage Affiliates Trust presently has a consensus price target of $26.29, indicating a potential upside of 5.52%. Education Realty Trust has a consensus price target of $40.10, indicating a potential upside of 28.69%. Given Education Realty Trust’s higher possible upside, analysts plainly believe Education Realty Trust is more favorable than National Storage Affiliates Trust.
National Storage Affiliates Trust pays an annual dividend of $1.12 per share and has a dividend yield of 4.5%. Education Realty Trust pays an annual dividend of $1.56 per share and has a dividend yield of 5.0%. National Storage Affiliates Trust pays out 11,200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Education Realty Trust pays out 264.4% 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 2 consecutive years and Education Realty Trust has increased its dividend for 7 consecutive years. Education Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
National Storage Affiliates Trust has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Education Realty Trust has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.
Valuation and Earnings
This table compares National Storage Affiliates Trust and Education Realty Trust’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|National Storage Affiliates Trust||$268.13 million||4.68||$2.96 million||$0.01||2,491.00|
|Education Realty Trust||$331.07 million||7.13||$47.44 million||$0.59||52.81|
Education Realty Trust has higher revenue and earnings than National Storage Affiliates Trust. Education Realty Trust 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.
Institutional & Insider Ownership
93.4% of National Storage Affiliates Trust shares are held by institutional investors. 13.7% of National Storage Affiliates Trust shares are held by insiders. Comparatively, 0.5% of Education Realty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Education Realty Trust beats National Storage Affiliates Trust on 12 of the 17 factors compared between the two stocks.
National Storage Affiliates Trust Company Profile
National Storage Affiliates Trust is a Maryland real estate investment trust focused on the ownership, operation and acquisition of self storage properties located within the top 100 metropolitan statistical areas throughout the United States. The Company currently holds ownership interests in and operates 533 self storage properties located in 29 states with approximately 33 million rentable square feet. NSA is the sixth largest owner and operator of self storage properties among public and private companies in the U.S. For more information, please visit the Company's website at www.nationalstorageaffiliates.com. NSA is included in the MSCI US REIT Index (RMS/RMZ), the Russell 2000 Index of Companies and the S&P SmallCap 600 Index.
Education Realty Trust Company Profile
Education Realty Trust, Inc. (EdR) is a self-managed and self-advised real estate investment trust (REIT). The Trust is engaged in developing, acquiring, owning and managing collegiate housing communities located near university campuses. The Trust operates through three segments: collegiate housing leasing, development consulting services and management services. The Trust develops collegiate housing communities for its own account and also provides third-party development consulting services on collegiate housing development projects for universities and other third parties. As of December 31, 2016, the Trust owned 64 collegiate housing communities located in 22 states containing 32,729 beds in 12,294 apartment units on or near 38 university campuses. As of December 31, 2016, the Trust provided third-party management services for 22 collegiate housing communities located in 11 states containing 11,767 beds in 4,214 apartment units on or near 17 university campuses.
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