Comparing National Storage Affiliates Trust (NYSE:NSA) and RLJ Lodging Trust (NYSE:RLJ)

National Storage Affiliates Trust (NYSE:NSA) and RLJ Lodging Trust (NYSE:RLJ) are both mid-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Earnings and Valuation

This table compares National Storage Affiliates Trust and RLJ Lodging Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
National Storage Affiliates Trust $432.22 million 13.14 $48.61 million $0.88 72.43
RLJ Lodging Trust $473.09 million 5.19 -$404.44 million ($2.37) -6.22

National Storage Affiliates Trust has higher earnings, but lower revenue than RLJ Lodging Trust. RLJ Lodging Trust is trading at a lower price-to-earnings ratio than National Storage Affiliates Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares National Storage Affiliates Trust and RLJ Lodging Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
National Storage Affiliates Trust 18.59% 6.45% 2.51%
RLJ Lodging Trust -57.05% -16.47% -6.82%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for National Storage Affiliates Trust and RLJ Lodging Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Storage Affiliates Trust 0 5 4 0 2.44
RLJ Lodging Trust 0 0 6 0 3.00

National Storage Affiliates Trust currently has a consensus target price of $59.11, suggesting a potential downside of 7.26%. RLJ Lodging Trust has a consensus target price of $18.60, suggesting a potential upside of 26.27%. Given RLJ Lodging Trust’s stronger consensus rating and higher possible upside, analysts clearly believe RLJ Lodging Trust is more favorable than National Storage Affiliates Trust.

Institutional & Insider Ownership

83.4% of National Storage Affiliates Trust shares are held by institutional investors. Comparatively, 92.3% of RLJ Lodging Trust shares are held by institutional investors. 12.2% of National Storage Affiliates Trust shares are held by insiders. Comparatively, 1.6% of RLJ Lodging Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

National Storage Affiliates Trust has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, RLJ Lodging Trust has a beta of 1.99, suggesting that its stock price is 99% more volatile than the S&P 500.

Dividends

National Storage Affiliates Trust pays an annual dividend of $1.80 per share and has a dividend yield of 2.8%. RLJ Lodging Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. National Storage Affiliates Trust pays out 204.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. RLJ Lodging Trust pays out -1.7% of its earnings in the form of a dividend. National Storage Affiliates Trust has raised its dividend for 6 consecutive years and RLJ Lodging Trust has raised its dividend for 1 consecutive years. National Storage Affiliates Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

National Storage Affiliates Trust beats RLJ Lodging Trust on 10 of the 17 factors compared between the two stocks.

About National Storage Affiliates Trust

National Storage Affiliates Trust operates as a real estate investment trust. It focuses on the ownership, operation, and acquisition of self-storage properties located within the metropolitan statistical areas throughout the United States. The company was founded by Arlen D. Nordhagen in April 2013 and is headquartered in Greenwood Village, CO.

About RLJ Lodging Trust

RLJ Lodging Trust is a real estate investment trust, which engages in the ownership and acquisition of hotels. It operates through the following hotel brands: Embassy Suites, Marriott, Hilton, Hyatt House, Hyatt Place, Hilton Garden Inn, Wyndham, Renaissance, Fairfield Inn & Suites, Holiday Inn Express, Sleep Inn, Hampton Inn, Hotel Indigo, IHG, SpringHill Suites, Hyatt Centric, and Homewood Suites. The company was founded by Robert L. Johnson on January 31, 2011 and is headquartered in Bethesda, MD.

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