Comparing DiamondRock Hospitality (NYSE:DRH) & National Storage Affiliates Trust (NYSE:NSA)

National Storage Affiliates Trust (NYSE:NSA) and DiamondRock Hospitality (NYSE:DRH) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Dividends

National Storage Affiliates Trust pays an annual dividend of $2.28 per share and has a dividend yield of 6.0%. DiamondRock Hospitality pays an annual dividend of $0.12 per share and has a dividend yield of 1.4%. National Storage Affiliates Trust pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DiamondRock Hospitality pays out 42.9% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares National Storage Affiliates Trust and DiamondRock Hospitality”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Storage Affiliates Trust	$795.63 million	3.61	$156.67 million	$1.71	22.04
DiamondRock Hospitality	$1.11 billion	1.62	$86.34 million	$0.28	31.09

National Storage Affiliates Trust has higher earnings, but lower revenue than DiamondRock Hospitality. National Storage Affiliates Trust is trading at a lower price-to-earnings ratio than DiamondRock Hospitality, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for National Storage Affiliates Trust and DiamondRock Hospitality, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Storage Affiliates Trust	2	6	1	0	1.89
DiamondRock Hospitality	0	3	1	0	2.25

National Storage Affiliates Trust currently has a consensus price target of $43.06, indicating a potential upside of 14.24%. DiamondRock Hospitality has a consensus price target of $10.05, indicating a potential upside of 15.45%. Given DiamondRock Hospitality’s stronger consensus rating and higher probable upside, analysts plainly believe DiamondRock Hospitality is more favorable than National Storage Affiliates Trust.

Insider & Institutional Ownership

100.0% of National Storage Affiliates Trust shares are held by institutional investors. 13.0% of National Storage Affiliates Trust shares are held by company insiders. Comparatively, 1.4% of DiamondRock Hospitality shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares National Storage Affiliates Trust and DiamondRock Hospitality’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Storage Affiliates Trust	20.59%	10.35%	2.98%
DiamondRock Hospitality	6.30%	4.25%	2.18%

Risk & Volatility

National Storage Affiliates Trust has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, DiamondRock Hospitality has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500.

Summary

National Storage Affiliates Trust beats DiamondRock Hospitality on 9 of the 15 factors compared between the two stocks.

About National Storage Affiliates Trust

National Storage Affiliates Trust is a real estate investment trust headquartered in Greenwood Village, Colorado, focused on the ownership, operation and acquisition of self storage properties predominantly located within the top 100 metropolitan statistical areas throughout the United States. As of December 31, 2023, the Company held ownership interests in and operated 1,050 self storage properties, located in 42 states and Puerto Rico with approximately 68.6 million rentable square feet, which excludes 39 self storage properties classified as held for sale to be sold to a third party. NSA is one of the largest owners and operators of self storage properties among public and private companies in the United States.

About DiamondRock Hospitality

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 36 premium quality hotels with over 9,700 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment.