WallStSmart

Public Storage (PSA)vsRedwood Trust Inc (RWT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Public Storage generates 1777% more annual revenue ($4.91B vs $261.57M). PSA leads profitability with a 41.6% profit margin vs 2.2%. RWT appears more attractively valued with a PEG of 1.47. PSA earns a higher WallStSmart Score of 62/100 (C+).

PSA

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 4.0Quality: 3.5
Piotroski: 3/9Altman Z: 1.00

RWT

Hold

43

out of 100

Grade: D

Growth: 4.7Profit: 4.0Value: 7.0Quality: 2.5
Piotroski: 2/9Altman Z: 0.00
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PSAOvervalued (-8.4%)

Margin of Safety

-8.4%

Fair Value

$271.04

Current Price

$296.50

$25.46 premium

UndervaluedFair: $271.04Overvalued
RWTUndervalued (+58.7%)

Margin of Safety

+58.7%

Fair Value

$16.21

Current Price

$3.55

$12.66 discount

UndervaluedFair: $16.21Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PSA5 strengths · Avg: 9.2/10
Profit MarginProfitability
41.6%10/10

Keeps 42 of every $100 in revenue as profit

Operating MarginProfitability
45.7%10/10

Strong operational efficiency at 45.7%

Market CapQuality
$55.40B9/10

Large-cap with strong market position

Return on EquityProfitability
22.2%9/10

Every $100 of equity generates 22 in profit

EPS GrowthGrowth
45.1%8/10

Earnings expanding 45.1% YoY

RWT1 strengths · Avg: 10.0/10
Price/BookValuation
0.5x10/10

Reasonable price relative to book value

Areas to Watch

PSA4 concerns · Avg: 3.8/10
P/E RatioValuation
28.1x4/10

Moderate valuation

Price/BookValuation
10.8x4/10

Trading at 10.8x book value

Revenue GrowthGrowth
3.3%4/10

3.3% revenue growth

Debt/EquityHealth
1.113/10

Elevated debt levels

RWT4 concerns · Avg: 3.0/10
Market CapQuality
$566.51M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.6%3/10

ROE of 0.6% — below average capital efficiency

Profit MarginProfitability
2.2%3/10

2.2% margin — thin

Operating MarginProfitability
0.1%3/10

Operating margin of 0.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : PSA

The strongest argument for PSA centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 41.6% and operating margin at 45.7%.

Bull Case : RWT

The strongest argument for RWT centers on Price/Book. PEG of 1.47 suggests the stock is reasonably priced for its growth.

Bear Case : PSA

The primary concerns for PSA are P/E Ratio, Price/Book, Revenue Growth.

Bear Case : RWT

The primary concerns for RWT are Market Cap, Return on Equity, Profit Margin. Debt-to-equity of 29.41 is elevated, increasing financial risk. Thin 2.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

RWT carries more volatility with a beta of 1.43 — expect wider price swings.

PSA is growing revenue faster at 3.3% — sustainability is the question.

PSA generates stronger free cash flow (799M), providing more financial flexibility.

Monitor REIT - INDUSTRIAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PSA scores higher overall (62/100 vs 43/100), backed by strong 41.6% margins. RWT offers better value entry with a 58.7% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Public Storage

REAL ESTATE · REIT - INDUSTRIAL · USA

Public Storage is an American international self storage company headquartered in Glendale, California, that is run as a real estate investment trust (REIT).

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Redwood Trust Inc

REAL ESTATE · REIT - MORTGAGE · USA

Redwood Trust, Inc., is a specialized finance company in the United States. The company is headquartered in Mill Valley, California.

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