Life Storage (NYSE:LSI) and DIGITAL RLTY TR/SH (NYSE:DLR) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.
Volatility & Risk
Life Storage has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500. Comparatively, DIGITAL RLTY TR/SH has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500.
90.2% of Life Storage shares are held by institutional investors. 0.8% of Life Storage shares are held by insiders. Comparatively, 0.5% of DIGITAL RLTY TR/SH shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Life Storage pays an annual dividend of $4.28 per share and has a dividend yield of 3.7%. DIGITAL RLTY TR/SH pays an annual dividend of $4.32 per share and has a dividend yield of 3.4%. Life Storage pays out 77.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DIGITAL RLTY TR/SH pays out 65.5% of its earnings in the form of a dividend. Life Storage has increased its dividend for 2 consecutive years and DIGITAL RLTY TR/SH has increased its dividend for 15 consecutive years.
This table compares Life Storage and DIGITAL RLTY TR/SH’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|DIGITAL RLTY TR/SH||9.22%||2.69%||1.08%|
This is a breakdown of recent ratings and recommmendations for Life Storage and DIGITAL RLTY TR/SH, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|DIGITAL RLTY TR/SH||0||3||9||0||2.75|
Life Storage currently has a consensus price target of $110.29, suggesting a potential downside of 3.91%. DIGITAL RLTY TR/SH has a consensus price target of $132.92, suggesting a potential upside of 5.42%. Given DIGITAL RLTY TR/SH’s stronger consensus rating and higher possible upside, analysts plainly believe DIGITAL RLTY TR/SH is more favorable than Life Storage.
Earnings and Valuation
This table compares Life Storage and DIGITAL RLTY TR/SH’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Life Storage||$550.85 million||9.72||$206.59 million||$5.51||20.83|
|DIGITAL RLTY TR/SH||$3.05 billion||8.63||$331.25 million||$6.60||19.10|
DIGITAL RLTY TR/SH has higher revenue and earnings than Life Storage. DIGITAL RLTY TR/SH is trading at a lower price-to-earnings ratio than Life Storage, indicating that it is currently the more affordable of the two stocks.
DIGITAL RLTY TR/SH beats Life Storage on 10 of the 17 factors compared between the two stocks.
About Life Storage
Life Storage, Inc. is a self-administered and self-managed equity REIT that is in the business of acquiring and managing self storage facilities. Located in Buffalo, New York, the Company operates more than 750 storage facilities in 28 states and Ontario, Canada. The Company serves both residential and commercial storage customers with storage units rented by month. Life Storage consistently provides responsive service to its 400,000-plus customers, making it a leader in the industry.
About DIGITAL RLTY TR/SH
Digital Realty supports the data center, colocation and interconnection strategies of more than 2,300 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Asia and Australia. Digital Realty's clients include domestic and international companies of all sizes, ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare, and consumer products.
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