Head-To-Head Review: SEGRO (OTCMKTS:SEGXF) and CubeSmart (NYSE:CUBE)

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

Volatility and Risk

CubeSmart has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, SEGRO has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CubeSmart	28.93%	11.84%	4.90%
SEGRO	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings for CubeSmart and SEGRO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CubeSmart	0	10	5	0	2.33
SEGRO	2	2	2	0	2.00

CubeSmart currently has a consensus price target of $43.42, suggesting a potential upside of 7.97%. Given CubeSmart’s stronger consensus rating and higher possible upside, research analysts plainly believe CubeSmart is more favorable than SEGRO.

Insider and Institutional Ownership

97.6% of CubeSmart shares are owned by institutional investors. 1.8% of CubeSmart shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares CubeSmart and SEGRO”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CubeSmart	$1.13 billion	8.04	$333.78 million	$1.42	28.32
SEGRO	$957.24 million	14.15	$726.60 million	N/A	N/A

SEGRO has lower revenue, but higher earnings than CubeSmart.

Summary

CubeSmart beats SEGRO on 9 of the 12 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 SEGRO

SEGRO is a UK Real Estate Investment Trust (REIT), listed on the London Stock Exchange and Euronext Paris, and is a leading owner, manager and developer of modern warehouses and industrial property. It owns or manages 10.8 million square metres of space (116 million square feet) valued at £20.6 billion serving customers from a wide range of industry sectors. Its properties are located in and around major cities and at key transportation hubs in the UK and in seven other European countries. For over 100 years SEGRO has been creating the space that enables extraordinary things to happen. From modern big box warehouses, used primarily for regional, national and international distribution hubs, to urban warehousing (including data centres) located close to major population centres and business districts, it provides high-quality assets that allow its customers to thrive. A commitment to be a force for societal and environmental good is integral to SEGRO’s purpose and strategy. Its Responsible SEGRO framework focuses on three long-term priorities where the company believes it can make the greatest impact: Championing Low-Carbon Growth, Investing in Local Communities and Environments and Nurturing Talent. Striving for the highest standards of innovation, sustainable business practices and enabling economic and societal prosperity underpins SEGRO’s ambition to be the best property company.