CubeSmart (NYSE:CUBE) and Equinix (NASDAQ:EQIX) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.
This table compares CubeSmart and Equinix’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares CubeSmart and Equinix’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CubeSmart||$558.94 million||9.74||$134.28 million||$1.59||18.38|
|Equinix||$4.37 billion||7.08||$232.98 million||$18.53||20.77|
Equinix has higher revenue and earnings than CubeSmart. CubeSmart is trading at a lower price-to-earnings ratio than Equinix, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for CubeSmart and Equinix, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CubeSmart currently has a consensus target price of $32.11, indicating a potential upside of 9.86%. Equinix has a consensus target price of $502.53, indicating a potential upside of 30.55%. Given Equinix’s stronger consensus rating and higher probable upside, analysts plainly believe Equinix is more favorable than CubeSmart.
Institutional and Insider Ownership
99.8% of Equinix shares are held by institutional investors. 1.3% of CubeSmart shares are held by company insiders. Comparatively, 0.5% of Equinix shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
CubeSmart has a beta of 0.04, meaning that its stock price is 96% less volatile than the S&P 500. Comparatively, Equinix has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.
CubeSmart pays an annual dividend of $1.20 per share and has a dividend yield of 4.1%. Equinix pays an annual dividend of $9.12 per share and has a dividend yield of 2.4%. CubeSmart pays out 75.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equinix pays out 49.2% of its earnings in the form of a dividend. CubeSmart has increased its dividend for 6 consecutive years and Equinix has increased its dividend for 2 consecutive years. CubeSmart is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Equinix beats CubeSmart on 10 of the 17 factors compared between the two stocks.
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 secure storage space for residential and commercial customers. According to the 2018 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.
Equinix, Inc. (Nasdaq: EQIX) connects the world's leading businesses to their customers, employees and partners inside the most-interconnected data centers. In 52 markets across five continents, Equinix is where companies come together to realize new opportunities and accelerate their business, IT and cloud strategies.
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