WallStSmart

Public Storage (PSA)vsSunstone Hotel Investors Inc (SHO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Public Storage generates 407% more annual revenue ($4.87B vs $960.13M). PSA leads profitability with a 39.1% profit margin vs 2.6%. SHO appears more attractively valued with a PEG of 3.00. 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: 4.3
Piotroski: 4/9Altman Z: 1.13

SHO

Hold

44

out of 100

Grade: D

Growth: 4.0Profit: 4.5Value: 4.7Quality: 6.0
Piotroski: 3/9Altman Z: 1.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PSAUndervalued (+6.9%)

Margin of Safety

+6.9%

Fair Value

$315.77

Current Price

$302.45

$13.32 discount

UndervaluedFair: $315.77Overvalued
SHOUndervalued (+51.3%)

Margin of Safety

+51.3%

Fair Value

$19.04

Current Price

$9.83

$9.21 discount

UndervaluedFair: $19.04Overvalued

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
46.0%10/10

Strong operational efficiency at 46.0%

Market CapQuality
$53.09B9/10

Large-cap with strong market position

Return on EquityProfitability
20.2%9/10

Every $100 of equity generates 20 in profit

EPS GrowthGrowth
32.8%8/10

Earnings expanding 32.8% YoY

SHO1 strengths · Avg: 10.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Areas to Watch

PSA4 concerns · Avg: 3.5/10
P/E RatioValuation
31.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
10.8x4/10

Trading at 10.8x book value

Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

PEG RatioValuation
4.282/10

Expensive relative to growth rate

SHO4 concerns · Avg: 3.0/10
Market CapQuality
$1.86B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
1.2%3/10

ROE of 1.2% — below average capital efficiency

Profit MarginProfitability
2.6%3/10

2.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 46.0%.

Bull Case : SHO

The strongest argument for SHO centers on Price/Book. Revenue growth of 10.3% demonstrates continued momentum.

Bear Case : PSA

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

Bear Case : SHO

The primary concerns for SHO are Market Cap, Return on Equity, Profit Margin. A P/E of 245.8x leaves little room for execution misses. Thin 2.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

PSA carries more volatility with a beta of 1.00 — expect wider price swings.

SHO is growing revenue faster at 10.3% — sustainability is the question.

PSA generates stronger free cash flow (695M), providing more financial flexibility.

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

Bottom Line

PSA scores higher overall (62/100 vs 44/100), backed by strong 39.1% margins. SHO offers better value entry with a 51.3% 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).

Visit Website →

Sunstone Hotel Investors Inc

REAL ESTATE · REIT - HOTEL & MOTEL · USA

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (REIT) that, as of the date of this release, has interests in 19 hotels with 9,997 rooms.

Visit Website →

Want to dig deeper into these stocks?