Contrasting Smartstop Self Storage REIT (NYSE:SMA) & EPR Properties (NYSE:EPR)

EPR Properties (NYSE:EPR) and Smartstop Self Storage REIT (NYSE:SMA) are both real estate companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Volatility and Risk

EPR Properties has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Smartstop Self Storage REIT has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Dividends

EPR Properties pays an annual dividend of $3.72 per share and has a dividend yield of 6.5%. Smartstop Self Storage REIT pays an annual dividend of $1.63 per share and has a dividend yield of 5.1%. 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 319.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Insider & Institutional Ownership

74.7% of EPR Properties shares are held by institutional investors. 0.0% of EPR Properties shares are held by company insiders. Comparatively, 5.7% of Smartstop Self Storage REIT shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

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%

Analyst Ratings

This is a breakdown of current recommendations and price targets for EPR Properties and Smartstop Self Storage REIT, as reported by MarketBeat.com.

	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 currently has a consensus target price of $66.15, indicating a potential upside of 16.31%. Smartstop Self Storage REIT has a consensus target price of $37.08, indicating a potential upside of 16.80%. Given Smartstop Self Storage REIT’s higher possible upside, analysts clearly believe Smartstop Self Storage REIT is more favorable than EPR Properties.

Valuation and Earnings

This table compares EPR Properties and Smartstop Self Storage REIT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EPR Properties	$718.36 million	6.07	$274.94 million	$3.11	18.29
Smartstop Self Storage REIT	$281.14 million	6.25	-$1.55 million	$0.51	62.25

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.

Summary

EPR Properties beats Smartstop Self Storage REIT on 13 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.