CubeSmart vs Public Storage

CubeSmart and Public Storage are two major players in the self-storage industry, with both companies offering a range of storage solutions for individuals and businesses. While CubeSmart has a smaller market capitalization and fewer facilities than Public Storage, it has shown strong growth in recent years. On the other hand, Public Storage is a larger and more established company with a significant presence in the market. Both stocks have performed well in the past, but investors may want to consider factors such as growth potential, valuation, and dividend yield when deciding on which stock to invest in.

CubeSmart or Public Storage?

When comparing CubeSmart and Public 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 Public 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 4.08%, while Public Storage has a dividend yield of 4.35%. 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 111.87%. On the other hand, Public Storage reports a 5-year dividend growth of 8.45% year and a payout ratio of 110.79%.

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 27.99 and Public Storage's P/E ratio at 29.11. 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 4.08 while Public Storage's P/B ratio is 6.24.

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 Public Storage's is 0.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CubeSmart's ROE at 14.48% and Public Storage's ROE at 20.91%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $49.93 for CubeSmart and $344.15 for Public Storage. Over the past year, CubeSmart's prices ranged from $33.17 to $55.14, with a yearly change of 66.23%. Public Storage's prices fluctuated between $233.18 and $369.99, with a yearly change of 58.67%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.