Reviewing Global Self Storage (NASDAQ:SELF) and Diversified Healthcare Trust (NASDAQ:DHC)

Global Self Storage (NASDAQ:SELF) and Diversified Healthcare Trust (NASDAQ:DHC) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.

Earnings and Valuation

This table compares Global Self Storage and Diversified Healthcare Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Self Storage	$12.19 million	4.65	$2.94 million	$0.19	26.48
Diversified Healthcare Trust	$1.46 billion	0.61	-$293.57 million	($1.37)	-2.70

Global Self Storage has higher earnings, but lower revenue than Diversified Healthcare Trust. Diversified Healthcare Trust is trading at a lower price-to-earnings ratio than Global Self Storage, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

28.9% of Global Self Storage shares are owned by institutional investors. Comparatively, 76.0% of Diversified Healthcare Trust shares are owned by institutional investors. 8.0% of Global Self Storage shares are owned by company insiders. Comparatively, 1.4% of Diversified Healthcare Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Global Self Storage and Diversified Healthcare Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Self Storage	18.23%	4.65%	3.35%
Diversified Healthcare Trust	-24.14%	-15.36%	-6.51%

Risk & Volatility

Global Self Storage has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500. Comparatively, Diversified Healthcare Trust has a beta of 2.22, indicating that its stock price is 122% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Global Self Storage and Diversified Healthcare Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Self Storage	0	0	1	0	3.00
Diversified Healthcare Trust	1	1	1	0	2.00

Global Self Storage presently has a consensus target price of $6.50, suggesting a potential upside of 29.22%. Diversified Healthcare Trust has a consensus target price of $4.50, suggesting a potential upside of 21.62%. Given Global Self Storage’s stronger consensus rating and higher possible upside, analysts plainly believe Global Self Storage is more favorable than Diversified Healthcare Trust.

Dividends

Global Self Storage pays an annual dividend of $0.29 per share and has a dividend yield of 5.8%. Diversified Healthcare Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.1%. Global Self Storage pays out 152.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Diversified Healthcare Trust pays out -2.9% of its earnings in the form of a dividend.

Summary

Global Self Storage beats Diversified Healthcare Trust on 11 of the 15 factors compared between the two stocks.

About Global Self Storage

Global Self Storage is a self-administered and self-managed REIT that owns, operates, manages, acquires, and redevelops self-storage properties. The company's self-storage properties are designed to offer affordable, easily accessible and secure storage space for residential and commercial customers. Through its wholly owned subsidiaries, the company owns and/or manages 13 self-storage properties in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania, South Carolina, and Oklahoma.

About Diversified Healthcare Trust

DHC is a real estate investment trust, or REIT, focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location. As of December 31, 2023, DHC's approximately $7.2 billion portfolio included 371 properties in 36 states and Washington, D.C., occupied by approximately 500 tenants, and totaling approximately 8.6 million square feet of life science and medical office properties and more than 27,000 senior living units. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, MA.