Financial Contrast: CubeSmart (CUBE) versus Its Rivals

CubeSmart (NYSE: CUBE) is one of 230 public companies in the “Real estate investment trusts” industry, but how does it contrast to its competitors? We will compare CubeSmart to related businesses based on the strength of its profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Valuation & Earnings

This table compares CubeSmart and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
CubeSmart $558.94 million $134.28 million 17.35
CubeSmart Competitors $794.88 million $176.06 million 13.80

CubeSmart’s competitors have higher revenue and earnings than CubeSmart. CubeSmart is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

CubeSmart has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500. Comparatively, CubeSmart’s competitors have a beta of 0.56, indicating that their average share price is 44% less volatile than the S&P 500.

Dividends

CubeSmart pays an annual dividend of $1.20 per share and has a dividend yield of 4.3%. CubeSmart pays out 75.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Real estate investment trusts” companies pay a dividend yield of 4.9% and pay out 71.8% of their earnings in the form of a dividend. CubeSmart has increased its dividend for 6 consecutive years. CubeSmart lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional & Insider Ownership

72.8% of shares of all “Real estate investment trusts” companies are held by institutional investors. 1.2% of CubeSmart shares are held by insiders. Comparatively, 7.1% of shares of all “Real estate investment trusts” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for CubeSmart and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CubeSmart 1 6 6 0 2.38
CubeSmart Competitors 1512 7819 8445 219 2.41

CubeSmart currently has a consensus price target of $29.70, indicating a potential upside of 7.65%. As a group, “Real estate investment trusts” companies have a potential upside of 14.67%. Given CubeSmart’s competitors stronger consensus rating and higher probable upside, analysts clearly believe CubeSmart has less favorable growth aspects than its competitors.

Profitability

This table compares CubeSmart and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CubeSmart 24.02% 8.39% 3.91%
CubeSmart Competitors 23.85% 7.16% 2.69%

Summary

CubeSmart competitors beat CubeSmart on 11 of the 15 factors compared.

CubeSmart Company Profile

CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and secure storage space for residential and commercial customers. According to the 2018 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.

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