Regency Centers (NYSE: CUBE) and CubeSmart (NYSE:CUBE) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Valuation and Earnings

This table compares Regency Centers and CubeSmart’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Regency Centers $984.33 million 11.37 $176.07 million $3.69 17.91
CubeSmart $558.94 million 10.21 $134.28 million $1.59 19.31

Regency Centers has higher revenue and earnings than CubeSmart. Regency Centers is trading at a lower price-to-earnings ratio than CubeSmart, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Regency Centers and CubeSmart’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Regency Centers 22.90% 3.83% 2.28%
CubeSmart 25.89% 9.22% 4.26%

Institutional and Insider Ownership

93.7% of Regency Centers shares are held by institutional investors. 1.1% of Regency Centers shares are held by insiders. Comparatively, 1.3% of CubeSmart shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Regency Centers pays an annual dividend of $2.22 per share and has a dividend yield of 3.4%. CubeSmart pays an annual dividend of $1.20 per share and has a dividend yield of 3.9%. Regency Centers pays out 60.2% of its earnings in the form of a dividend. 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. Regency Centers has raised its dividend for 4 consecutive years and CubeSmart has raised its dividend for 6 consecutive years. CubeSmart is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Regency Centers and CubeSmart, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Regency Centers 0 5 7 0 2.58
CubeSmart 0 8 4 0 2.33

Regency Centers presently has a consensus price target of $67.71, suggesting a potential upside of 2.48%. CubeSmart has a consensus price target of $32.00, suggesting a potential upside of 4.20%. Given CubeSmart’s higher probable upside, analysts clearly believe CubeSmart is more favorable than Regency Centers.

Risk and Volatility

Regency Centers has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, CubeSmart has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500.

Summary

Regency Centers beats CubeSmart on 9 of the 17 factors compared between the two stocks.

Regency Centers Company Profile

Regency Centers is the preeminent national owner, operator, and developer of shopping centers located in affluent and densely populated trade areas. Our portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered, self-managed, and an S&P 500 Index member. For more information, please visit regencycenters.com.

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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