Public Storage (NYSE:PSA – Get Free Report) and Orion Office REIT (NYSE:ONL – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.
Insider and Institutional Ownership
78.8% of Public Storage shares are owned by institutional investors. Comparatively, 80.0% of Orion Office REIT shares are owned by institutional investors. 11.0% of Public Storage shares are owned by company insiders. Comparatively, 0.2% of Orion Office REIT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Public Storage and Orion Office REIT’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Public Storage | 44.88% | 36.55% | 10.52% |
Orion Office REIT | -51.47% | -10.69% | -6.56% |
Volatility and Risk
Analyst Ratings
This is a breakdown of current recommendations for Public Storage and Orion Office REIT, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Public Storage | 1 | 6 | 6 | 2 | 2.60 |
Orion Office REIT | 0 | 1 | 0 | 0 | 2.00 |
Public Storage presently has a consensus target price of $340.93, indicating a potential upside of 1.78%. Given Public Storage’s stronger consensus rating and higher probable upside, analysts plainly believe Public Storage is more favorable than Orion Office REIT.
Dividends
Public Storage pays an annual dividend of $12.00 per share and has a dividend yield of 3.6%. Orion Office REIT pays an annual dividend of $0.40 per share and has a dividend yield of 9.7%. Public Storage pays out 112.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Orion Office REIT pays out -24.2% of its earnings in the form of a dividend. Orion Office REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares Public Storage and Orion Office REIT”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Public Storage | $4.52 billion | 12.98 | $2.15 billion | $10.67 | 31.39 |
Orion Office REIT | $195.04 million | 1.19 | -$57.30 million | ($1.65) | -2.51 |
Public Storage has higher revenue and earnings than Orion Office REIT. Orion Office REIT is trading at a lower price-to-earnings ratio than Public Storage, indicating that it is currently the more affordable of the two stocks.
Summary
Public Storage beats Orion Office REIT on 13 of the 17 factors compared between the two stocks.
About Public Storage
Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At December 31, 2023, we had: (i) interests in 3,044 self-storage facilities located in 40 states with approximately 218 million net rentable square feet in the United States and (ii) a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels: SHUR), which owned 275 self-storage facilities located in seven Western European nations with approximately 15 million net rentable square feet operated under the Shurgard brand. Our headquarters are located in Glendale, California.
About Orion Office REIT
Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.
Receive News & Ratings for Public Storage Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Public Storage and related companies with MarketBeat.com's FREE daily email newsletter.