WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Public Storage generates 394% more annual revenue ($4.87B vs $985.77M). PSA leads profitability with a 39.1% profit margin vs 3.8%. 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: 3.3Quality: 3.5
Piotroski: 3/9Altman Z: 1.00

SHO

Buy

55

out of 100

Grade: C

Growth: 6.7Profit: 4.5Value: 4.7Quality: 6.0
Piotroski: 3/9Altman Z: 1.24
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PSAFair Value (-2.6%)

Margin of Safety

-2.6%

Fair Value

$286.49

Current Price

$309.68

$23.19 premium

UndervaluedFair: $286.49Overvalued
SHOUndervalued (+35.1%)

Margin of Safety

+35.1%

Fair Value

$14.30

Current Price

$11.48

$2.82 discount

UndervaluedFair: $14.30Overvalued

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
$52.51B9/10

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

SHO2 strengths · Avg: 10.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
1170.0%10/10

Earnings expanding 1170.0% YoY

Areas to Watch

PSA4 concerns · Avg: 3.8/10
P/E RatioValuation
30.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.1x4/10

Trading at 11.1x book value

Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

Debt/EquityHealth
1.053/10

Elevated debt levels

SHO4 concerns · Avg: 2.8/10
Return on EquityProfitability
2.0%3/10

ROE of 2.0% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.002/10

Expensive relative to growth rate

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, EPS Growth. Revenue growth of 11.0% 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 Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 98.4x leaves little room for execution misses. Thin 3.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

PSA carries more volatility with a beta of 0.98 — expect wider price swings.

SHO is growing revenue faster at 11.0% — sustainability is the question.

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

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

Bottom Line

PSA scores higher overall (62/100 vs 55/100), backed by strong 39.1% margins. SHO offers better value entry with a 35.1% margin of safety. Both earn "Buy" and "Buy" 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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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.

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