Financial Survey: Millrose Properties (NYSE:MRP) & Public Storage (NYSE:PSA)

Public Storage (NYSE:PSA) and Millrose Properties (NYSE:MRP) are both real estate companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Earnings & Valuation

This table compares Public Storage and Millrose Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Public Storage	$4.82 billion	13.10	$1.78 billion	$9.55	35.41
Millrose Properties	$600.46 million	6.84	$379.86 million	$3.02	8.81

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Public Storage and Millrose Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Public Storage	0	14	7	0	2.33
Millrose Properties	0	3	0	1	2.50

Public Storage currently has a consensus target price of $325.79, suggesting a potential downside of 3.67%. Millrose Properties has a consensus target price of $35.00, suggesting a potential upside of 31.50%. Given Millrose Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Millrose Properties is more favorable than Public Storage.

Risk and Volatility

Public Storage has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Millrose Properties has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.

Profitability

This table compares Public Storage and Millrose Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Public Storage	37.76%	29.93%	8.52%
Millrose Properties	63.24%	8.56%	5.13%

Insider & Institutional Ownership

78.8% of Public Storage shares are owned by institutional investors. 11.1% of Public Storage shares are owned by company insiders. Comparatively, 0.2% of Millrose Properties shares are owned by company 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 3.5%. Millrose Properties pays an annual dividend of $3.16 per share and has a dividend yield of 11.9%. Public Storage pays out 125.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Millrose Properties pays out 104.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Millrose Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Public Storage beats Millrose Properties on 11 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 Millrose Properties

Millrose Properties, Inc. is a real estate investment and management company that focuses on acquiring, developing, and managing high-quality commercial properties. They are headquartered in Purchase, New York.