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

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

Profitability

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

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

Analyst Recommendations

This is a breakdown of current ratings for DiamondRock Hospitality and National Storage Affiliates Trust, as reported by MarketBeat.

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

DiamondRock Hospitality currently has a consensus target price of $10.25, indicating a potential upside of 18.84%. National Storage Affiliates Trust has a consensus target price of $43.06, indicating a potential upside of 13.77%. Given DiamondRock Hospitality’s stronger consensus rating and higher possible upside, equities analysts clearly believe DiamondRock Hospitality is more favorable than National Storage Affiliates Trust.

Dividends

DiamondRock Hospitality pays an annual dividend of $0.12 per share and has a dividend yield of 1.4%. National Storage Affiliates Trust pays an annual dividend of $2.28 per share and has a dividend yield of 6.0%. DiamondRock Hospitality pays out 42.9% of its earnings in the form of a dividend. 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.

Volatility & Risk

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

Valuation & Earnings

This table compares DiamondRock Hospitality and National Storage Affiliates Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DiamondRock Hospitality	$1.07 billion	1.67	$86.34 million	$0.28	30.80
National Storage Affiliates Trust	$858.06 million	3.36	$156.67 million	$1.71	22.13

National Storage Affiliates Trust has lower revenue, but higher earnings 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.

Insider and Institutional Ownership

100.0% of National Storage Affiliates Trust shares are owned by institutional investors. 1.4% of DiamondRock Hospitality shares are owned by insiders. Comparatively, 13.0% of National Storage Affiliates Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

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

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.

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.