Contrasting CapitaLand Ascendas REIT (OTCMKTS:ACDSF) & Big Yellow Group (OTCMKTS:BYLOF)

CapitaLand Ascendas REIT (OTCMKTS:ACDSF) and Big Yellow Group (OTCMKTS:BYLOF) are both real estate companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Profitability

This table compares CapitaLand Ascendas REIT and Big Yellow Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CapitaLand Ascendas REIT	N/A	N/A	N/A
Big Yellow Group	N/A	N/A	N/A

Valuation & Earnings

This table compares CapitaLand Ascendas REIT and Big Yellow Group’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CapitaLand Ascendas REIT	N/A	N/A	N/A	$0.18	11.20
Big Yellow Group	N/A	N/A	N/A	$0.43	30.63

CapitaLand Ascendas REIT is trading at a lower price-to-earnings ratio than Big Yellow Group, indicating that it is currently the more affordable of the two stocks.

Dividends

CapitaLand Ascendas REIT pays an annual dividend of $0.14 per share and has a dividend yield of 7.0%. Big Yellow Group pays an annual dividend of $0.10 per share and has a dividend yield of 0.8%. CapitaLand Ascendas REIT pays out 78.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Big Yellow Group pays out 23.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings for CapitaLand Ascendas REIT and Big Yellow Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CapitaLand Ascendas REIT	0	0	1	0	3.00
Big Yellow Group	0	1	3	0	2.75

Big Yellow Group has a consensus price target of $1,500.00, suggesting a potential upside of 11,394.25%. Given Big Yellow Group’s higher possible upside, analysts clearly believe Big Yellow Group is more favorable than CapitaLand Ascendas REIT.

Institutional and Insider Ownership

34.2% of CapitaLand Ascendas REIT shares are owned by institutional investors. Comparatively, 53.1% of Big Yellow Group shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Big Yellow Group beats CapitaLand Ascendas REIT on 6 of the 8 factors compared between the two stocks.

About CapitaLand Ascendas REIT

CapitaLand Ascendas REIT (CLAR), formerly known as Ascendas Real Estate Investment Trust (Ascendas Reit), is Singapore's first and largest listed business space and industrial real estate investment trust. It was listed on the Singapore Exchange Securities Trading Limited (SGX-ST) in November 2002. CLAR has since grown to be a global REIT anchored in Singapore, with a strong focus on tech and logistics properties in developed markets. As at 30 June 2023, its investment properties under management stood at S$17.0 billion. It owns a total of 230 properties across three segments, namely Business Space and Life Sciences; Logistics; and Industrial and Data Centres. These properties are in the developed markets of Singapore, the United States, Australia, and the United Kingdom/Europe. These properties house a tenant base of more than 1,750 international and local companies from a wide range of industries and activities, including data centres, information technology, engineering, logistics & supply chain management, biomedical sciences, financial services (backroom office support), electronics, government and other manufacturing and services industries. Major tenants include Singtel, SEA Group, DSO National Laboratories, Stripe, DBS, Seagate, Citibank, Pinterest, Equinix, and J.P. Morgan. CLAR is listed in several indices. These include the FTSE Straits Times Index, the Morgan Stanley Capital International, Inc (MSCI) Index, the European Public Real Estate Association/National Association of Real Estate Investment Trusts (EPRA/NAREIT) Global Real Estate Index and Global Property Research (GPR) Asia 250. CLAR has an issuer rating of A3' by Moody's Investors Service. CLAR is managed by CapitaLand Ascendas REIT Management Limited, formerly known as Ascendas Funds Management (S) Limited, a wholly owned subsidiary of CapitaLand Investment Limited, a leading global real estate investment manager with a strong Asia foothold.

About Big Yellow Group

Big Yellow is the UK's brand leader in self storage. Big Yellow now operates from a platform of 108 stores, including 24 stores branded as Armadillo Self Storage. We have a pipeline of 0.9 million sq ft comprising 11 proposed Big Yellow self storage facilities. The current maximum lettable area of the existing platform (including Armadillo) is 6.3 million sq ft. When fully built out the portfolio will provide approximately 7.2 million sq ft of flexible storage space. 99% of our stores and sites by value are held freehold and long leasehold, with the remaining 1% short leasehold. The Group has pioneered the development of the latest generation of self storage facilities, which utilise state of the art technology and are located in high profile, accessible, main road locations. Our focus on the location and visibility of our stores, with excellent customer service, a market-leading online platform, and significant and increasing investment in sustainability, has created in Big Yellow the most recognised brand name in the UK self storage industry.