CubeSmart (CUBE) vs Rexford Industrial Realty, Inc. (REXR)

CubeSmart and Rexford Industrial Realty, Inc. are both Reit Industrial companies. CubeSmart and Rexford Industrial Realty, Inc. are of similar size ($8.5B and $8.5B). Rexford Industrial Realty, Inc. has negative trailing earnings, so its P/E is not meaningful; CubeSmart trades at 25.9×. CubeSmart grew revenue faster over the last twelve months: 3.86% against 0.55%. CubeSmart has the higher net margin (29.4% vs −40.4%) and the higher return on invested capital (4.67% vs 2.19%). Both pay a dividend; CubeSmart yields more (4.48% vs 3.08%). Across the 22 metrics below, CubeSmart leads on 14 and Rexford Industrial Realty, Inc. on 8.

Valuation

Metric CUBE REXR Reit Industrial median
P/E 25.90 n/m 28.30
P/S 7.55 8.45 8.16
P/B 3.30 1.08 1.89
Price to free cash flow 16.88 36.92 21.44
EV/EBITDA 17.02 16.89 17.97
EV/Sales 10.59 11.71 11.71
Earnings yield 3.86% (4.83%) 3.38%
Free cash flow yield 5.92% 2.71% 2.71%

Profitability

Metric CUBE REXR Reit Industrial median
Gross margin 67.83% 76.80% 73.76%
Operating margin 39.85% 39.27% 39.85%
Net margin 29.41% (40.39%) 28.04%
Free cash flow margin 44.71% 22.90% 13.63%
Return on equity 12.28% (4.78%) 6.83%
Return on assets 5.03% (3.24%) 3.45%
Return on invested capital 4.67% 2.19% 2.92%

Growth

Metric CUBE REXR Reit Industrial median
Revenue growth (TTM) 3.86% 0.55% 3.86%
EPS growth (last fiscal year) (15.12%) (28.33%) —
Revenue growth, 5-year CAGR 10.58% 24.89% 13.33%
Net income growth, 5-year CAGR 15.05% 26.68% 9.91%

Health

Metric CUBE REXR Reit Industrial median
Debt to equity 1.34 0.41 0.84
Current ratio 0.07 1.70 0.78
Net debt to EBITDA 4.76 4.52 4.76

Dividend

Metric CUBE REXR Reit Industrial median
Dividend yield 4.48% 3.08% 3.14%
Payout ratio 1.10 1.42 1.14

Size

Metric CUBE REXR Reit Industrial median
Market cap 8.51b 8.47b 8.24b

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