Highwoods Properties (NYSE:HIW – Get Rating) and Global Self Storage (NASDAQ:SELF – Get Rating) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.
Earnings and Valuation
This table compares Highwoods Properties and Global Self Storage’s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Highwoods Properties | $828.93 million | 2.94 | $159.06 million | $1.47 | 15.78 |
Global Self Storage | $11.94 million | 4.78 | $3.28 million | $0.19 | 27.05 |
Highwoods Properties has higher revenue and earnings than Global Self Storage. Highwoods Properties is trading at a lower price-to-earnings ratio than Global Self Storage, indicating that it is currently the more affordable of the two stocks.
Profitability
Net Margins | Return on Equity | Return on Assets | |
Highwoods Properties | 19.19% | 6.41% | 2.73% |
Global Self Storage | 17.23% | 4.29% | 3.06% |
Insider & Institutional Ownership
94.6% of Highwoods Properties shares are held by institutional investors. Comparatively, 32.3% of Global Self Storage shares are held by institutional investors. 1.4% of Highwoods Properties shares are held by insiders. Comparatively, 6.9% of Global Self Storage shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Dividends
Highwoods Properties pays an annual dividend of $2.00 per share and has a dividend yield of 8.6%. Global Self Storage pays an annual dividend of $0.29 per share and has a dividend yield of 5.6%. Highwoods Properties pays out 136.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Global Self Storage pays out 152.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Global Self Storage has increased its dividend for 1 consecutive years. Highwoods Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Highwoods Properties has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Global Self Storage has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Highwoods Properties and Global Self Storage, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Highwoods Properties | 0 | 5 | 2 | 0 | 2.29 |
Global Self Storage | 0 | 0 | 1 | 0 | 3.00 |
Highwoods Properties currently has a consensus price target of $29.71, suggesting a potential upside of 28.13%. Global Self Storage has a consensus price target of $7.00, suggesting a potential upside of 36.19%. Given Global Self Storage’s stronger consensus rating and higher probable upside, analysts plainly believe Global Self Storage is more favorable than Highwoods Properties.
Summary
Highwoods Properties beats Global Self Storage on 10 of the 17 factors compared between the two stocks.
About Highwoods Properties
Highwoods Properties, Inc. operates as a real estate investment trust, which engages in the operation, acquisition and development of rental office properties. It operates through the following geographical segments: Atlanta, Charlotte, Nashville, Orlando, Raleigh, Richmond, and Tampa. The company was founded by Ronald P. Gibson in 1994 and is headquartered in Raleigh, NC.
About Global Self Storage
Global Self Storage, Inc. operates as a real estate investment trust. It engages in the ownership, operation, management, acquisition, and re-development of self-storage properties. It offers personal, outdoor parking, climate controlled, wine, and business storage facilities. The company was founded on September 1, 1983 and is headquartered in Millbrook, NY.
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