CubeSmart (CUBE) vs Terreno Realty Corporation (TRNO)

CubeSmart and Terreno Realty Corporation are both Reit Industrial companies. CubeSmart is the larger, with a market value of $8.5B against $7.2B — 1.2× the size. Terreno Realty Corporation trades at the lower P/E: 17.7× against 25.9×. Terreno Realty Corporation grew revenue faster over the last twelve months: 18.1% against 3.86%. Terreno Realty Corporation has the higher net margin (76.9% vs 29.4%) and the lower return on invested capital (2.42% vs 4.67%). Both pay a dividend; CubeSmart yields more (4.48% vs 2.67%). Across the 22 metrics below, Terreno Realty Corporation leads on 14 and CubeSmart on 8.

Valuation

Metric CUBE TRNO Reit Industrial median
P/E 25.90 17.71 28.30
P/S 7.55 14.00 8.16
P/B 3.30 1.59 1.89
Price to free cash flow 16.88 n/m 21.44
EV/EBITDA 17.02 25.97 17.97
EV/Sales 10.59 15.87 11.71
Earnings yield 3.86% 5.65% 3.38%
Free cash flow yield 5.92% (9.75%) 2.71%

Profitability

Metric CUBE TRNO Reit Industrial median
Gross margin 67.83% 76.17% 73.76%
Operating margin 39.85% 41.39% 39.85%
Net margin 29.41% 76.92% 28.04%
Free cash flow margin 44.71% (136.53%) 13.63%
Return on equity 12.28% 9.24% 6.83%
Return on assets 5.03% 7.23% 3.45%
Return on invested capital 4.67% 2.42% 2.92%

Growth

Metric CUBE TRNO Reit Industrial median
Revenue growth (TTM) 3.86% 18.05% 3.86%
EPS growth (last fiscal year) (15.12%) 103.65% —
Revenue growth, 5-year CAGR 10.58% 20.58% 13.33%
Net income growth, 5-year CAGR 15.05% 38.26% 9.91%

Health

Metric CUBE TRNO Reit Industrial median
Debt to equity 1.34 0.22 0.84
Current ratio 0.07 0.43 0.78
Net debt to EBITDA 4.76 3.36 4.76

Dividend

Metric CUBE TRNO Reit Industrial median
Dividend yield 4.48% 2.67% 3.14%
Payout ratio 1.10 0.87 1.14

Size

Metric CUBE TRNO Reit Industrial median
Market cap 8.51b 7.24b 8.24b

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