Head to Head Review: Service Properties Trust (NASDAQ:SVC) vs. Public Storage (NYSE:PSA)

Service Properties Trust (NASDAQ:SVCGet Rating) and Public Storage (NYSE:PSAGet Rating) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Valuation & Earnings

This table compares Service Properties Trust and Public Storage’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Service Properties Trust $1.50 billion 0.74 -$544.60 million ($2.85) -2.36
Public Storage $3.42 billion 16.26 $1.95 billion $10.29 30.75

Public Storage has higher revenue and earnings than Service Properties Trust. Service Properties Trust is trading at a lower price-to-earnings ratio than Public Storage, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Service Properties Trust and Public Storage, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Service Properties Trust 1 1 1 0 2.00
Public Storage 1 5 5 1 2.50

Service Properties Trust presently has a consensus price target of $11.00, suggesting a potential upside of 63.69%. Public Storage has a consensus price target of $363.25, suggesting a potential upside of 14.79%. Given Service Properties Trust’s higher possible upside, research analysts plainly believe Service Properties Trust is more favorable than Public Storage.

Profitability

This table compares Service Properties Trust and Public Storage’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Service Properties Trust -28.83% -28.63% -5.09%
Public Storage 54.79% 38.01% 12.04%

Insider & Institutional Ownership

79.6% of Service Properties Trust shares are held by institutional investors. Comparatively, 78.5% of Public Storage shares are held by institutional investors. 1.3% of Service Properties Trust shares are held by insiders. Comparatively, 11.0% of Public Storage shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Service Properties Trust has a beta of 2.12, indicating that its stock price is 112% more volatile than the S&P 500. Comparatively, Public Storage has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.

Dividends

Service Properties Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.6%. Public Storage pays an annual dividend of $8.00 per share and has a dividend yield of 2.5%. Service Properties Trust pays out -1.4% of its earnings in the form of a dividend. Public Storage pays out 77.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Public Storage beats Service Properties Trust on 13 of the 17 factors compared between the two stocks.

Service Properties Trust Company Profile (Get Rating)

Service Properties Trust is a real estate investment trust, or REIT, which owns a diverse portfolio of hotels and net lease service and necessity-based retail properties across the United States and in Puerto Rico and Canada with 149 distinct brands across 23 industries. SVC's properties are primarily operated under long-term management or lease agreements. SVC is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), or RMR Inc., an alternative asset management company that is headquartered in Newton, Massachusetts.

Public Storage Company Profile (Get Rating)

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns and operates self-storage facilities. At September 30, 2020, we had: (i) interests in 2,504 self-storage facilities located in 38 states with approximately 171 million net rentable square feet in the United States, (ii) an approximate 35% common equity interest in Shurgard Self Storage SA (Euronext Brussels:SHUR) which owned 239 self-storage facilities located in seven Western European nations with approximately 13 million net rentable square feet operated under the Shurgard brand and (iii) an approximate 42% common equity interest in PS Business Parks, Inc. (NYSE:PSB) which owned and operated approximately 28 million rentable square feet of commercial space at September 30, 2020. Our headquarters are located in Glendale, California.

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