WallStSmart

Public Storage (PSA)vsRedwood Trust Inc (RWT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Public Storage generates 2809% more annual revenue ($4.87B vs $167.46M). PSA leads profitability with a 39.1% profit margin vs -54.7%. 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: 3.3Quality: 3.5
Piotroski: 3/9Altman Z: 1.00

RWT

Hold

39

out of 100

Grade: F

Growth: 3.0Profit: 2.0Value: 7.0Quality: 3.0
Piotroski: 4/9Altman Z: 0.00
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PSAFair Value (-2.7%)

Margin of Safety

-2.7%

Fair Value

$286.12

Current Price

$329.44

$43.32 premium

UndervaluedFair: $286.12Overvalued
RWTUndervalued (+36.8%)

Margin of Safety

+36.8%

Fair Value

$10.60

Current Price

$4.68

$5.92 discount

UndervaluedFair: $10.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PSA5 strengths · Avg: 9.2/10
Profit MarginProfitability
39.1%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
46.3%10/10

Strong operational efficiency at 46.3%

Market CapQuality
$54.73B9/10

Large-cap with strong market position

Return on EquityProfitability
20.6%9/10

Every $100 of equity generates 21 in profit

EPS GrowthGrowth
32.8%8/10

Earnings expanding 32.8% YoY

RWT1 strengths · Avg: 10.0/10
Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Areas to Watch

PSA4 concerns · Avg: 3.8/10
P/E RatioValuation
31.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.9x4/10

Trading at 11.9x book value

Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

Debt/EquityHealth
1.053/10

Elevated debt levels

RWT4 concerns · Avg: 2.3/10
Market CapQuality
$641.11M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-9.6%2/10

ROE of -9.6% — below average capital efficiency

Revenue GrowthGrowth
-13.4%2/10

Revenue declined 13.4%

EPS GrowthGrowth
-52.6%2/10

Earnings declined 52.6%

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 39.1% and operating margin at 46.3%.

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, Revenue Growth. Debt-to-equity of 26.42 is elevated, increasing financial risk.

Key Dynamics to Monitor

PSA profiles as a value stock while RWT is a turnaround play — different risk/reward profiles.

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

PSA is growing revenue faster at 3.2% — sustainability is the question.

PSA generates stronger free cash flow (625M), providing more financial flexibility.

Bottom Line

PSA scores higher overall (62/100 vs 39/100), backed by strong 39.1% margins. RWT offers better value entry with a 36.8% 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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