Safestore (OTCMKTS:SFSHF) and ARMOUR Residential REIT (NYSE:ARR) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.
This is a summary of recent ratings for Safestore and ARMOUR Residential REIT, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ARMOUR Residential REIT||1||3||1||0||2.00|
ARMOUR Residential REIT has a consensus price target of $13.50, indicating a potential upside of 43.77%. Given ARMOUR Residential REIT’s higher probable upside, analysts clearly believe ARMOUR Residential REIT is more favorable than Safestore.
Risk and Volatility
Safestore has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, ARMOUR Residential REIT has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.
This table compares Safestore and ARMOUR Residential REIT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ARMOUR Residential REIT||-154.29%||11.20%||1.20%|
Earnings and Valuation
This table compares Safestore and ARMOUR Residential REIT’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ARMOUR Residential REIT||$439.57 million||1.38||-$249.90 million||$2.27||4.14|
Safestore has higher earnings, but lower revenue than ARMOUR Residential REIT.
Insider & Institutional Ownership
52.7% of ARMOUR Residential REIT shares are owned by institutional investors. 1.3% of ARMOUR Residential REIT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
ARMOUR Residential REIT beats Safestore on 6 of the 9 factors compared between the two stocks.
UK's largest self storage group with 146 stores Safestore has 119 self storage centres in the UK including two business centres and a further 27 stores in the Paris region. Safestore was founded in the UK in 1998. It acquired the French business Une Pièce en Plus in 2004 which was founded in 1998 by the current Safestore Group CEO Frederic Vecchioli.
About ARMOUR Residential REIT
ARMOUR Residential REIT, Inc. invests in residential mortgage backed securities in the United States. The company is managed by ARMOUR Capital Management LP. Its securities portfolio primarily consists of the United States Government-sponsored entity's (GSE) and the Government National Mortgage Administration's issued or guaranteed securities backed by fixed rate, hybrid adjustable rate, and adjustable rate home loans, as well as unsecured notes and bonds issued by the GSE and the United States treasuries; and money market instruments. The company also invests in other securities backed by residential mortgages for which the payment of principal and interest is not guaranteed by a GSE or government agency. ARMOUR Residential REIT, Inc. has elected to be taxed as a real estate investment trust under the Internal Revenue Code. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was founded in 2008 and is based in Vero Beach, Florida.
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