EPR Properties (NYSE:EPR – Get Free Report) and Smartstop Self Storage REIT (NYSE:SMA – Get Free Report) are both real estate companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, valuation, earnings, profitability and institutional ownership.
Profitability
This table compares EPR Properties and Smartstop Self Storage REIT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| EPR Properties | 35.45% | 11.34% | 4.58% |
| Smartstop Self Storage REIT | 9.68% | 2.33% | 1.23% |
Valuation and Earnings
This table compares EPR Properties and Smartstop Self Storage REIT”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| EPR Properties | $718.36 million | 5.92 | $274.94 million | $3.11 | 17.86 |
| Smartstop Self Storage REIT | $281.14 million | 6.36 | -$1.55 million | $0.51 | 63.28 |
EPR Properties has higher revenue and earnings than Smartstop Self Storage REIT. EPR Properties is trading at a lower price-to-earnings ratio than Smartstop Self Storage REIT, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
74.7% of EPR Properties shares are held by institutional investors. 0.0% of EPR Properties shares are held by insiders. Comparatively, 5.7% of Smartstop Self Storage REIT shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
EPR Properties has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Smartstop Self Storage REIT has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for EPR Properties and Smartstop Self Storage REIT, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| EPR Properties | 0 | 4 | 9 | 0 | 2.69 |
| Smartstop Self Storage REIT | 1 | 4 | 4 | 2 | 2.64 |
EPR Properties presently has a consensus target price of $66.15, indicating a potential upside of 19.11%. Smartstop Self Storage REIT has a consensus target price of $36.53, indicating a potential upside of 13.18%. Given EPR Properties’ stronger consensus rating and higher possible upside, analysts plainly believe EPR Properties is more favorable than Smartstop Self Storage REIT.
Dividends
EPR Properties pays an annual dividend of $3.72 per share and has a dividend yield of 6.7%. Smartstop Self Storage REIT pays an annual dividend of $1.58 per share and has a dividend yield of 4.9%. EPR Properties pays out 119.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Smartstop Self Storage REIT pays out 309.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EPR Properties has raised its dividend for 1 consecutive years. EPR Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
EPR Properties beats Smartstop Self Storage REIT on 14 of the 18 factors compared between the two stocks.
About EPR Properties
EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues that create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately $5.7 billion (after accumulated depreciation of approximately $1.4 billion) across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.
About Smartstop Self Storage REIT
Symmetry Medical Inc. (Symmetry) is a medical device solutions company, including surgical instruments, orthopedic implants, and sterilization cases and trays. The Company designs, develops and offers worldwide production and supply chain capabilities for these products to customers in the orthopedic industry, and other medical device markets (including but not limited to arthroscopy, dental, laparoscopy, osteobiologic, and endoscopy segments). It also manufactures specialized non-healthcare products, primarily in the aerospace industry. The Company operates in two segments: original equipment manufacturer (OEM) solutions and symmetry surgical. On August 15, 2011, the Company acquired PSC Industries, Inc’s Olsen Medical division. On December 29, 2011 it acquired the surgical instruments product portfolio from Codman & Shurtleff, Inc., a Johnson & Johnson Company.
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