CubeSmart vs Extra Space Storage Which Is More Reliable?

CubeSmart and Extra Space Storage are two leading players in the self-storage industry, offering storage solutions to individuals and businesses across the United States. Both companies have seen significant growth in recent years, as the demand for storage units continues to rise. Investors looking to capitalize on this trend may be interested in comparing the performance of CubeSmart and Extra Space Storage stocks. By examining key financial metrics, market trends, and growth potential, investors can make informed decisions about which company is a better investment option for their portfolio.

CubeSmart or Extra Space Storage?

When comparing CubeSmart and Extra Space Storage, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between CubeSmart and Extra Space Storage.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. CubeSmart has a dividend yield of 4.29%, while Extra Space Storage has a dividend yield of 3.94%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CubeSmart reports a 5-year dividend growth of 10.17% year and a payout ratio of 113.57%. On the other hand, Extra Space Storage reports a 5-year dividend growth of 14.04% year and a payout ratio of 169.98%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with CubeSmart P/E ratio at 26.77 and Extra Space Storage's P/E ratio at 43.11. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CubeSmart P/B ratio is 3.86 while Extra Space Storage's P/B ratio is 2.49.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CubeSmart has seen a 5-year revenue growth of 0.44%, while Extra Space Storage's is 0.60%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CubeSmart's ROE at 14.44% and Extra Space Storage's ROE at 5.68%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $47.24 for CubeSmart and $162.65 for Extra Space Storage. Over the past year, CubeSmart's prices ranged from $39.80 to $55.14, with a yearly change of 38.54%. Extra Space Storage's prices fluctuated between $131.02 and $184.87, with a yearly change of 41.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.