CubeSmart (CUBE) vs Public Storage (PSA)

CubeSmart and Public Storage are both Reit Industrial companies. Public Storage is the larger, with a market value of $53.2B against $8.5B — 6.2× the size. CubeSmart trades at the lower P/E: 25.9× against 27.4×. CubeSmart grew revenue faster over the last twelve months: 3.86% against 2.97%. Public Storage has the higher net margin (37.7% vs 29.4%) and the higher return on invested capital (7.20% vs 4.67%). Both pay a dividend; CubeSmart yields more (4.48% vs 4.22%). Across the 23 metrics below, CubeSmart leads on 12 and Public Storage on 11.

Valuation

Metric CUBE PSA Reit Industrial median
P/E 25.90 27.45 28.30
P/S 7.55 10.36 8.16
P/B 3.30 10.26 1.89
Price to free cash flow 16.88 19.63 21.44
EV/EBITDA 17.02 17.97 17.97
EV/Sales 10.59 12.45 11.71
Earnings yield 3.86% 3.64% 3.38%
Free cash flow yield 5.92% 5.09% 2.71%

Profitability

Metric CUBE PSA Reit Industrial median
Gross margin 67.83% 72.51% 73.76%
Operating margin 39.85% 45.25% 39.85%
Net margin 29.41% 37.74% 28.04%
Free cash flow margin 44.71% 52.76% 13.63%
Return on equity 12.28% 36.68% 6.83%
Return on assets 5.03% 9.08% 3.45%
Return on invested capital 4.67% 7.20% 2.92%

Growth

Metric CUBE PSA Reit Industrial median
Revenue growth (TTM) 3.86% 2.97% 3.86%
EPS growth (last fiscal year) (15.12%) (15.32%) —
Revenue growth, 5-year CAGR 10.58% 10.60% 13.33%
Net income growth, 5-year CAGR 15.05% 7.62% 9.91%

Health

Metric CUBE PSA Reit Industrial median
Debt to equity 1.34 1.10 0.84
Current ratio 0.07 0.66 0.78
Net debt to EBITDA 4.76 2.92 4.76

Dividend

Metric CUBE PSA Reit Industrial median
Dividend yield 4.48% 4.22% 3.14%
Payout ratio 1.10 0.43 1.14

Size

Metric CUBE PSA Reit Industrial median
Market cap 8.51b 53.17b 8.24b

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