Financial Survey: CubeSmart (NYSE:CUBE) and National Health Investors (NYSE:NHI)

CubeSmart (NYSE:CUBE) and National Health Investors (NYSE:NHI) are both mid-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.

Earnings and Valuation

This table compares CubeSmart and National Health Investors”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CubeSmart	$929.08 million	10.02	$391.18 million	$1.64	24.90
National Health Investors	$348.66 million	10.75	$137.99 million	$3.13	25.23

CubeSmart has higher revenue and earnings than National Health Investors. CubeSmart is trading at a lower price-to-earnings ratio than National Health Investors, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CubeSmart and National Health Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CubeSmart	35.44%	13.12%	5.76%
National Health Investors	40.97%	10.32%	5.41%

Institutional and Insider Ownership

97.6% of CubeSmart shares are held by institutional investors. Comparatively, 62.5% of National Health Investors shares are held by institutional investors. 1.7% of CubeSmart shares are held by insiders. Comparatively, 7.3% of National Health Investors shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

CubeSmart pays an annual dividend of $2.08 per share and has a dividend yield of 5.1%. National Health Investors pays an annual dividend of $3.68 per share and has a dividend yield of 4.7%. CubeSmart pays out 126.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Health Investors pays out 117.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CubeSmart has increased its dividend for 16 consecutive years. CubeSmart is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

CubeSmart has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, National Health Investors has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for CubeSmart and National Health Investors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CubeSmart	0	9	7	0	2.44
National Health Investors	0	1	3	1	3.00

CubeSmart currently has a consensus target price of $46.27, indicating a potential upside of 13.29%. National Health Investors has a consensus target price of $84.20, indicating a potential upside of 6.62%. Given CubeSmart’s higher possible upside, analysts clearly believe CubeSmart is more favorable than National Health Investors.

Summary

CubeSmart beats National Health Investors on 10 of the 18 factors compared between the two stocks.

About CubeSmart

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, in most locations, climate-controlled storage space for residential and commercial customers. According to the 2023 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.

About National Health Investors

Incorporated in 1991, National Health Investors, Inc. (NYSE:NHI) is a real estate investment trust specializing in sale, leasebacks, joint-ventures, senior housing operating partnerships, and mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI's portfolio consists of independent living, assisted living and memory care communities, entrance-fee retirement communities, skilled nursing facilities, and specialty hospitals.