Power REIT (NYSE:PW) vs. Public Storage (NYSE:PSA) Critical Comparison
by Michael Walen · The Markets DailyPublic Storage (NYSE:PSA – Get Free Report) and Power REIT (NYSE:PW – Get Free Report) are both real estate companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.
Risk and Volatility
Public Storage has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Power REIT has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.
Profitability
This table compares Public Storage and Power REIT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Public Storage | 41.80% | 40.98% | 10.19% |
| Power REIT | -752.26% | -215.55% | -39.65% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Public Storage and Power REIT, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Public Storage | 0 | 14 | 7 | 0 | 2.33 |
| Power REIT | 0 | 0 | 0 | 0 | 0.00 |
Public Storage presently has a consensus target price of $326.05, suggesting a potential upside of 0.02%. Given Public Storage’s stronger consensus rating and higher probable upside, analysts plainly believe Public Storage is more favorable than Power REIT.
Insider and Institutional Ownership
78.8% of Public Storage shares are held by institutional investors. Comparatively, 14.6% of Power REIT shares are held by institutional investors. 11.1% of Public Storage shares are held by company insiders. Comparatively, 22.4% of Power REIT shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Public Storage and Power REIT”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Public Storage | $4.82 billion | 11.87 | $1.78 billion | $10.48 | 31.11 |
| Power REIT | $2.01 million | 1.47 | -$14.37 million | ($6.26) | -1.28 |
Public Storage has higher revenue and earnings than Power REIT. Power REIT is trading at a lower price-to-earnings ratio than Public Storage, indicating that it is currently the more affordable of the two stocks.
Summary
Public Storage beats Power REIT on 12 of the 14 factors compared between the two stocks.
About Public Storage
Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At December 31, 2023, we had: (i) interests in 3,044 self-storage facilities located in 40 states with approximately 218 million net rentable square feet in the United States and (ii) a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels: SHUR), which owned 275 self-storage facilities located in seven Western European nations with approximately 15 million net rentable square feet operated under the Shurgard brand. Our headquarters are located in Glendale, California.
About Power REIT
Power REIT, with a focus on the Triple Bottom Line and a commitment to Profit, Planet and People is a specialized real estate investment trust (REIT) that owns sustainable real estate related to infrastructure assets including properties for Controlled Environment Agriculture, Renewable Energy and Transportation. Power REIT is actively seeking to expand its real estate portfolio related to Controlled Environment Agriculture in the form of greenhouses for the cultivation of food and cannabis.