Reviewing TPG RE Finance Trust (NYSE:TRTX) and Public Storage (NYSE:PSA)

Public Storage (NYSE:PSA) and TPG RE Finance Trust (NYSE:TRTX) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Public Storage	40.54%	34.07%	9.60%
TPG RE Finance Trust	19.65%	-7.50%	-2.19%

Valuation and Earnings

This table compares Public Storage and TPG RE Finance Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Public Storage	$4.68 billion	13.03	$2.15 billion	$9.63	36.14
TPG RE Finance Trust	$390.25 million	1.89	-$116.63 million	$0.69	13.23

Public Storage has higher revenue and earnings than TPG RE Finance Trust. TPG RE Finance Trust is trading at a lower price-to-earnings ratio than Public Storage, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Public Storage has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, TPG RE Finance Trust has a beta of 2.18, suggesting that its share price is 118% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Public Storage	1	6	6	2	2.60
TPG RE Finance Trust	1	0	5	0	2.67

Public Storage currently has a consensus price target of $339.64, suggesting a potential downside of 2.42%. TPG RE Finance Trust has a consensus price target of $9.08, suggesting a potential downside of 0.51%. Given TPG RE Finance Trust’s stronger consensus rating and higher possible upside, analysts plainly believe TPG RE Finance Trust is more favorable than Public Storage.

Insider & Institutional Ownership

78.8% of Public Storage shares are held by institutional investors. Comparatively, 57.1% of TPG RE Finance Trust shares are held by institutional investors. 11.0% of Public Storage shares are held by insiders. Comparatively, 2.5% of TPG RE Finance Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Public Storage pays an annual dividend of $12.00 per share and has a dividend yield of 3.4%. TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 10.5%. Public Storage pays out 124.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TPG RE Finance Trust pays out 139.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Public Storage beats TPG RE Finance Trust on 13 of the 17 factors compared between the two stocks.

About Public Storage

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At December 31, 2023, we had: (i) interests in 3,044 self-storage facilities located in 40 states with approximately 218 million net rentable square feet in the United States and (ii) a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels: SHUR), which owned 275 self-storage facilities located in seven Western European nations with approximately 15 million net rentable square feet operated under the Shurgard brand. Our headquarters are located in Glendale, California.

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.