Diversified Healthcare Trust (NASDAQ:DHC – Get Free Report) and Global Self Storage (NASDAQ:SELF – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Diversified Healthcare Trust and Global Self Storage, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Diversified Healthcare Trust | 1 | 1 | 1 | 0 | 2.00 |
| Global Self Storage | 0 | 0 | 1 | 0 | 3.00 |
Diversified Healthcare Trust presently has a consensus price target of $4.50, indicating a potential upside of 20.97%. Global Self Storage has a consensus price target of $6.50, indicating a potential upside of 29.22%. Given Global Self Storage’s stronger consensus rating and higher possible upside, analysts clearly believe Global Self Storage is more favorable than Diversified Healthcare Trust.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Diversified Healthcare Trust | -24.14% | -15.36% | -6.51% |
| Global Self Storage | 18.23% | 4.65% | 3.35% |
Risk and Volatility
Diversified Healthcare Trust has a beta of 2.22, indicating that its stock price is 122% more volatile than the S&P 500. Comparatively, Global Self Storage has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500.
Earnings & Valuation
This table compares Diversified Healthcare Trust and Global Self Storage”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Diversified Healthcare Trust | $1.41 billion | 0.63 | -$293.57 million | ($1.48) | -2.50 |
| Global Self Storage | $12.19 million | 4.65 | $2.94 million | $0.19 | 26.48 |
Global Self Storage has lower revenue, but higher earnings than Diversified Healthcare Trust. Diversified Healthcare Trust is trading at a lower price-to-earnings ratio than Global Self Storage, indicating that it is currently the more affordable of the two stocks.
Dividends
Diversified Healthcare Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.1%. Global Self Storage pays an annual dividend of $0.29 per share and has a dividend yield of 5.8%. Diversified Healthcare Trust pays out -2.7% of its earnings in the form of a dividend. Global Self Storage pays out 152.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider & Institutional Ownership
76.0% of Diversified Healthcare Trust shares are owned by institutional investors. Comparatively, 28.9% of Global Self Storage shares are owned by institutional investors. 10.0% of Diversified Healthcare Trust shares are owned by company insiders. Comparatively, 8.0% of Global Self Storage shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Global Self Storage beats Diversified Healthcare Trust on 10 of the 15 factors compared between the two stocks.
About Diversified Healthcare Trust
DHC is a real estate investment trust, or REIT, focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location. As of December 31, 2023, DHC's approximately $7.2 billion portfolio included 371 properties in 36 states and Washington, D.C., occupied by approximately 500 tenants, and totaling approximately 8.6 million square feet of life science and medical office properties and more than 27,000 senior living units. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, MA.
About Global Self Storage
Global Self Storage is a self-administered and self-managed REIT that owns, operates, manages, acquires, and redevelops self-storage properties. The company's self-storage properties are designed to offer affordable, easily accessible and secure storage space for residential and commercial customers. Through its wholly owned subsidiaries, the company owns and/or manages 13 self-storage properties in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania, South Carolina, and Oklahoma.
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