Financial Comparison: National Storage Affiliates Trust (NSA) versus CubeSmart (NYSE:CUBE)

National Storage Affiliates Trust (NYSE: NSA) and CubeSmart (NYSE:CUBE) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitabiliy.

Institutional and Insider Ownership

90.5% of National Storage Affiliates Trust shares are owned by institutional investors. 17.7% of National Storage Affiliates Trust shares are owned by insiders. Comparatively, 1.2% of CubeSmart shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares National Storage Affiliates Trust and CubeSmart’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
National Storage Affiliates Trust $218.69 million 4.55 $123.05 million $0.16 140.70
CubeSmart $521.28 million 8.29 $316.69 million $0.58 41.36

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.

Profitability

This table compares National Storage Affiliates Trust and CubeSmart’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%
CubeSmart 20.36% 6.59% 3.18%

Risk and Volatility

National Storage Affiliates Trust has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, CubeSmart has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500.

Dividends

National Storage Affiliates Trust pays an annual dividend of $1.04 per share and has a dividend yield of 4.6%. CubeSmart pays an annual dividend of $1.08 per share and has a dividend yield of 4.5%. 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. CubeSmart pays out 186.2% 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for National Storage Affiliates Trust and CubeSmart, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Storage Affiliates Trust 0 1 2 0 2.67
CubeSmart 1 2 4 0 2.43

National Storage Affiliates Trust presently has a consensus target price of $25.67, indicating a potential upside of 14.02%. CubeSmart has a consensus target price of $29.29, indicating a potential upside of 22.07%. Given CubeSmart’s higher possible upside, analysts clearly believe CubeSmart is more favorable than National Storage Affiliates Trust.

Summary

CubeSmart beats National Storage Affiliates Trust on 10 of the 17 factors compared between the two stocks.

About National Storage Affiliates Trust

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.

About CubeSmart

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.

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