Financial Contrast: TPG RE Finance Trust (NYSE:TRTX) & Safestore (OTCMKTS:SFSHF)

TPG RE Finance Trust (NYSE:TRTX) and Safestore (OTCMKTS:SFSHF) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Insider & Institutional Ownership

57.1% of TPG RE Finance Trust shares are held by institutional investors. 3.0% of TPG RE Finance Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares TPG RE Finance Trust and Safestore’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TPG RE Finance Trust	20.46%	6.37%	1.76%
Safestore	N/A	N/A	N/A

Volatility and Risk

TPG RE Finance Trust has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Safestore has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Earnings and Valuation

This table compares TPG RE Finance Trust and Safestore”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG RE Finance Trust	$351.97 million	1.99	$74.33 million	$0.65	13.75
Safestore	$284.91 million	6.75	$474.94 million	N/A	N/A

Safestore has lower revenue, but higher earnings than TPG RE Finance Trust.

Analyst Ratings

This is a breakdown of current recommendations and price targets for TPG RE Finance Trust and Safestore, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG RE Finance Trust	0	3	3	1	2.71
Safestore	0	0	0	0	0.00

TPG RE Finance Trust presently has a consensus target price of $10.75, indicating a potential upside of 20.31%. Given TPG RE Finance Trust’s stronger consensus rating and higher possible upside, analysts clearly believe TPG RE Finance Trust is more favorable than Safestore.

Summary

TPG RE Finance Trust beats Safestore on 11 of the 13 factors compared between the two stocks.

About TPG RE Finance Trust

TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in the United States. It invests in commercial mortgage loans; subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments; and commercial real estate collateralized loan obligations and commercial mortgage-backed securities secured by properties primarily in the multifamily, life science, mixed-use, hospitality, self storage, industrial, and retail real estate sectors. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. TPG RE Finance Trust, Inc. was incorporated in 2014 and is based in New York, New York.

About Safestore

Safestore is the UK’s largest self storage group with 190 stores on 31 October 2023, comprising 133 wholly owned stores in the UK (including 73 in London and the South East with the remainder in key metropolitan areas such as Manchester, Birmingham, Glasgow, Edinburgh, Liverpool, Sheffield, Leeds, Newcastle, and Bristol), 29 wholly owned stores in the Paris region, 11 stores in Spain, 11 stores in the Netherlands and 6 stores in Belgium. In addition, the Group operates 7 stores in Germany under a Joint Venture agreement with Carlyle. Safestore operates more self storage sites inside the M25 and in central Paris than any competitor providing more proximity to customers in the wealthiest and more densely populated UK and French markets. Safestore was founded in the UK in 1998. It acquired the French business “Une Pièce en Plus” (“UPP”) in 2004 which was founded in 1998 by the current Safestore Group CEO Frederic Vecchioli. Safestore has been listed on the London Stock Exchange since 2007. It entered the FTSE 250 index in October 2015. The Group provides storage to around 90,000 personal and business customers. As of 31 October 2023, Safestore had a maximum lettable area (“MLA”) of 8.090 million sq ft (excluding the expansion pipeline stores) of which 6.231 million sq ft was occupied. Safestore employs around 750 people in the UK, Paris, Spain, the Netherlands, and Belgium.