CubeSmart (CUBE) vs. Extra Space Storage (EXR) Head-To-Head Analysis
CubeSmart (NYSE: CUBE) and Extra Space Storage (NYSE:EXR) are both mid-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitabiliy, dividends, earnings and risk.
Risk and Volatility
CubeSmart has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500. Comparatively, Extra Space Storage has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for CubeSmart and Extra Space Storage, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Extra Space Storage||2||8||2||1||2.15|
CubeSmart currently has a consensus target price of $29.75, suggesting a potential upside of 23.34%. Extra Space Storage has a consensus target price of $88.30, suggesting a potential upside of 11.81%. Given CubeSmart’s stronger consensus rating and higher probable upside, equities research analysts clearly believe CubeSmart is more favorable than Extra Space Storage.
CubeSmart pays an annual dividend of $1.08 per share and has a dividend yield of 4.5%. Extra Space Storage pays an annual dividend of $3.12 per share and has a dividend yield of 4.0%. 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. Extra Space Storage pays out 108.3% 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 has raised its dividend for 6 consecutive years and Extra Space Storage has raised its dividend for 5 consecutive years. CubeSmart is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares CubeSmart and Extra Space Storage’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CubeSmart||$521.28 million||8.34||$316.69 million||$0.51||47.30|
|Extra Space Storage||$1.04 billion||9.54||$679.10 million||$2.88||27.42|
Extra Space Storage has higher revenue and earnings than CubeSmart. Extra Space Storage is trading at a lower price-to-earnings ratio than CubeSmart, indicating that it is currently the more affordable of the two stocks.
This table compares CubeSmart and Extra Space Storage’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Extra Space Storage||36.40%||14.92%||5.54%|
Extra Space Storage beats CubeSmart on 11 of the 16 factors compared between the two stocks.
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.
About Extra Space Storage
Extra Space Storage Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company owns, operates, manages, acquires, develops and redevelops self-storage properties located throughout the United States. The Company operates through three segments: rental operations; tenant reinsurance, and property management, acquisition and development. The Company’s rental operations activities include rental operations of stores in which it has an ownership interest. The Tenant reinsurance activities include the reinsurance of risks relating to the loss of goods stored by tenants in its stores. The Company’s property management, acquisition and development activities include managing, acquiring, developing and selling stores. The Company’s interest in its stores is held through its operating partnership, Extra Space Storage LP (the Operating Partnership). Its primary assets are general partner and limited partner interests in the Operating Partnership.
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