Head to Head Analysis: Smartstop Self Storage REIT (NYSE:SMA) versus RLJ Lodging Trust (NYSE:RLJ)

RLJ Lodging Trust (NYSE:RLJ – Get Free Report) and Smartstop Self Storage REIT (NYSE:SMA – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Volatility and Risk

RLJ Lodging Trust has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Smartstop Self Storage REIT has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Insider & Institutional Ownership

92.3% of RLJ Lodging Trust shares are held by institutional investors. 3.7% of RLJ Lodging Trust shares are held by company insiders. Comparatively, 5.5% of Smartstop Self Storage REIT shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares RLJ Lodging Trust and Smartstop Self Storage REIT”s top-line revenue, earnings per share (EPS) and valuation.

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

Dividends

RLJ Lodging Trust pays an annual dividend of $0.60 per share and has a dividend yield of 5.1%. Smartstop Self Storage REIT pays an annual dividend of $1.58 per share and has a dividend yield of 4.7%. RLJ Lodging Trust pays out -6,000.0% of its earnings in the form of a dividend. Smartstop Self Storage REIT pays out 1,053.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. RLJ Lodging Trust has increased its dividend for 3 consecutive years. RLJ Lodging Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares RLJ Lodging Trust and Smartstop Self Storage REIT’s net margins, return on equity and return on assets.

Analyst Recommendations

This is a summary of recent ratings and target prices for RLJ Lodging Trust and Smartstop Self Storage REIT, as provided by MarketBeat.

RLJ Lodging Trust currently has a consensus target price of $10.56, suggesting a potential downside of 10.28%. Smartstop Self Storage REIT has a consensus target price of $36.81, suggesting a potential upside of 9.14%. Given Smartstop Self Storage REIT’s stronger consensus rating and higher possible upside, analysts clearly believe Smartstop Self Storage REIT is more favorable than RLJ Lodging Trust.

Summary

Smartstop Self Storage REIT beats RLJ Lodging Trust on 10 of the 18 factors compared between the two stocks.

About RLJ Lodging Trust

(Get Free Report)

RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. The Company's portfolio currently consists of 96 hotels with approximately 21,200 rooms, located in 23 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms.

About Smartstop Self Storage REIT

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Symmetry Medical Inc. (Symmetry) is a medical device solutions company, including surgical instruments, orthopedic implants, and sterilization cases and trays. The Company designs, develops and offers worldwide production and supply chain capabilities for these products to customers in the orthopedic industry, and other medical device markets (including but not limited to arthroscopy, dental, laparoscopy, osteobiologic, and endoscopy segments). It also manufactures specialized non-healthcare products, primarily in the aerospace industry. The Company operates in two segments: original equipment manufacturer (OEM) solutions and symmetry surgical. On August 15, 2011, the Company acquired PSC Industries, Inc’s Olsen Medical division. On December 29, 2011 it acquired the surgical instruments product portfolio from Codman & Shurtleff, Inc., a Johnson & Johnson Company.