Head-To-Head Survey: CubeSmart (NYSE:CUBE) versus Empire State Realty Trust (NYSE:ESRT)

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

Insider and Institutional Ownership

97.6% of CubeSmart shares are held by institutional investors. Comparatively, 67.1% of Empire State Realty Trust shares are held by institutional investors. 1.7% of CubeSmart shares are held by insiders. Comparatively, 14.6% of Empire State Realty Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

CubeSmart pays an annual dividend of $2.08 per share and has a dividend yield of 5.5%. Empire State Realty Trust pays an annual dividend of $0.14 per share and has a dividend yield of 1.9%. CubeSmart pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Empire State Realty Trust pays out 66.7% of its earnings in the form of a dividend. CubeSmart has increased its dividend for 16 consecutive years. CubeSmart is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

CubeSmart has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Empire State Realty Trust has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for CubeSmart and Empire State Realty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CubeSmart	0	10	8	0	2.44
Empire State Realty Trust	1	2	2	0	2.20

CubeSmart currently has a consensus target price of $45.94, suggesting a potential upside of 22.36%. Empire State Realty Trust has a consensus target price of $10.43, suggesting a potential upside of 40.10%. Given Empire State Realty Trust’s higher possible upside, analysts plainly believe Empire State Realty Trust is more favorable than CubeSmart.

Profitability

This table compares CubeSmart and Empire State Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CubeSmart	35.44%	13.12%	5.76%
Empire State Realty Trust	4.96%	2.13%	0.90%

Earnings & Valuation

This table compares CubeSmart and Empire State Realty Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CubeSmart	$1.11 billion	7.73	$391.18 million	$1.56	24.07
Empire State Realty Trust	$766.18 million	1.65	$51.64 million	$0.21	35.46

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

Summary

CubeSmart beats Empire State Realty Trust on 12 of the 17 factors compared between the two stocks.

About CubeSmart

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, in most locations, climate-controlled storage space for residential and commercial customers. According to the 2023 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.

About Empire State Realty Trust

Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and operates a portfolio of modernized, amenitized, and well-located office, retail, and multifamily assets. The company is the recognized leader in energy efficiency and indoor environmental quality. ESRT’s flagship Empire State Building – the “World’s Most Famous Building” – includes its Observatory, Tripadvisor’s 2023 Travelers’ Choice Awards: Best of the Best the #1 attraction in the US for two consecutive years. As of September 30, 2023, ESRT’s portfolio is comprised of approximately 8.6 million rentable square feet of office space, 0.7 million rentable square feet of retail space and 727 residential units across three multifamily properties.