Analyzing Kilroy Realty (NYSE:KRC) & Global Self Storage (NASDAQ:SELF)

Global Self Storage (NASDAQ:SELF) and Kilroy Realty (NYSE:KRC) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.

Profitability

This table compares Global Self Storage and Kilroy Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Self Storage	14.13%	3.81%	2.76%
Kilroy Realty	28.68%	5.75%	2.96%

Analyst Recommendations

This is a summary of current ratings and target prices for Global Self Storage and Kilroy Realty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Self Storage	0	1	0	0	2.00
Kilroy Realty	1	12	1	0	2.00

Kilroy Realty has a consensus target price of $41.54, suggesting a potential upside of 7.11%. Given Kilroy Realty’s higher possible upside, analysts plainly believe Kilroy Realty is more favorable than Global Self Storage.

Dividends

Global Self Storage pays an annual dividend of $0.29 per share and has a dividend yield of 5.7%. Kilroy Realty pays an annual dividend of $2.16 per share and has a dividend yield of 5.6%. Global Self Storage pays out 181.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kilroy Realty pays out 79.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Global Self Storage has a beta of 0.01, suggesting that its stock price is 99% less volatile than the S&P 500. Comparatively, Kilroy Realty has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Insider and Institutional Ownership

28.9% of Global Self Storage shares are held by institutional investors. Comparatively, 94.2% of Kilroy Realty shares are held by institutional investors. 8.0% of Global Self Storage shares are held by insiders. Comparatively, 2.5% of Kilroy Realty shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Global Self Storage and Kilroy Realty”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Self Storage	$12.53 million	4.61	$2.12 million	$0.16	31.81
Kilroy Realty	$1.14 billion	4.04	$210.97 million	$2.71	14.31

Kilroy Realty has higher revenue and earnings than Global Self Storage. Kilroy Realty is trading at a lower price-to-earnings ratio than Global Self Storage, indicating that it is currently the more affordable of the two stocks.

Summary

Kilroy Realty beats Global Self Storage on 11 of the 15 factors compared between the two stocks.

About Global Self Storage

Global Self Storage is a self-administered and self-managed REIT that owns, operates, manages, acquires, and redevelops self-storage properties. The company's self-storage properties are designed to offer affordable, easily accessible and secure storage space for residential and commercial customers. Through its wholly owned subsidiaries, the company owns and/or manages 13 self-storage properties in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania, South Carolina, and Oklahoma.

About Kilroy Realty

Kilroy Realty Corporation (NYSE: KRC, the company, Kilroy) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin. The company has earned global recognition for sustainability, building operations, innovation and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity and productivity for some of the world's leading technology, entertainment, life science and business services companies. The company is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects. As of December 31, 2023, Kilroy's stabilized portfolio totaled approximately 17.0 million square feet of primarily office and life science space that was 85.0% occupied and 86.4% leased. The company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.5%. In addition, the company had two in-process life science redevelopment projects totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one approximately 875,000 square foot in-process development project with a total estimated investment of $1.0 billion.