Comparing Life Storage (LSI) and Its Competitors

Life Storage (NYSE: LSI) is one of 233 publicly-traded companies in the “Real estate investment trusts” industry, but how does it compare to its rivals? We will compare Life Storage to similar companies based on the strength of its valuation, analyst recommendations, profitability, risk, institutional ownership, dividends and earnings.

Dividends

Life Storage pays an annual dividend of $4.00 per share and has a dividend yield of 4.4%. Life Storage pays out 75.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Real estate investment trusts” companies pay a dividend yield of 4.8% and pay out 71.7% of their earnings in the form of a dividend. Life Storage lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Life Storage and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Life Storage 20.55% 5.52% 2.90%
Life Storage Competitors 23.40% 6.62% 2.62%

Institutional and Insider Ownership

73.0% of shares of all “Real estate investment trusts” companies are owned by institutional investors. 1.8% of Life Storage shares are owned by insiders. Comparatively, 7.1% of shares of all “Real estate investment trusts” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Life Storage has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, Life Storage’s rivals have a beta of 0.56, suggesting that their average share price is 44% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Life Storage and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Life Storage 5 9 0 0 1.64
Life Storage Competitors 1631 8090 8704 241 2.40

Life Storage presently has a consensus target price of $82.08, suggesting a potential downside of 8.81%. As a group, “Real estate investment trusts” companies have a potential upside of 12.99%. Given Life Storage’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Life Storage has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares Life Storage and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Life Storage $529.75 million $96.36 million 16.95
Life Storage Competitors $797.45 million $175.01 million 14.22

Life Storage’s rivals have higher revenue and earnings than Life Storage. Life Storage is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Life Storage rivals beat Life Storage on 13 of the 15 factors compared.

Life Storage Company Profile

Life Storage, Inc. is a self-administered and self-managed equity REIT that is in the business of acquiring and managing self storage facilities. Located in Buffalo, New York, the Company operates more than 700 storage facilities in 28 states. The Company serves both residential and commercial storage customers with storage units rented by month. Life Storage consistently provides responsive service to its 375,000-plus customers, making it a leader in the industry. For more information visit http://invest.lifestorage.com/.

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