Public Storage (NYSE:PSA) vs. Orchid Island Capital (NYSE:ORC) Head-To-Head Comparison

Orchid Island Capital (NYSE:ORC) and Public Storage (NYSE:PSA) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Dividends

Orchid Island Capital pays an annual dividend of $1.44 per share and has a dividend yield of 18.3%. Public Storage pays an annual dividend of $12.00 per share and has a dividend yield of 3.6%. Orchid Island Capital pays out 137.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Public Storage pays out 124.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

32.7% of Orchid Island Capital shares are owned by institutional investors. Comparatively, 78.8% of Public Storage shares are owned by institutional investors. 0.6% of Orchid Island Capital shares are owned by company insiders. Comparatively, 11.0% of Public Storage shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Orchid Island Capital has a beta of 1.85, meaning that its stock price is 85% more volatile than the S&P 500. Comparatively, Public Storage has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Orchid Island Capital and Public Storage, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orchid Island Capital	0	1	1	0	2.50
Public Storage	1	6	6	2	2.60

Orchid Island Capital presently has a consensus price target of $9.50, suggesting a potential upside of 20.71%. Public Storage has a consensus price target of $339.71, suggesting a potential upside of 0.84%. Given Orchid Island Capital’s higher probable upside, equities analysts plainly believe Orchid Island Capital is more favorable than Public Storage.

Profitability

This table compares Orchid Island Capital and Public Storage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orchid Island Capital	N/A	-4.08%	-0.46%
Public Storage	40.54%	34.07%	9.60%

Valuation & Earnings

This table compares Orchid Island Capital and Public Storage”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orchid Island Capital	$177.57 million	3.48	-$39.23 million	$1.05	7.50
Public Storage	$4.52 billion	13.06	$2.15 billion	$9.63	34.98

Public Storage has higher revenue and earnings than Orchid Island Capital. Orchid Island Capital is trading at a lower price-to-earnings ratio than Public Storage, indicating that it is currently the more affordable of the two stocks.

Summary

Public Storage beats Orchid Island Capital on 14 of the 17 factors compared between the two stocks.

About Orchid Island Capital

Orchid Island Capital, Inc., a specialty finance company, invests in residential mortgage-backed securities (RMBS) in the United States. The company’s RMBS is backed by single-family residential mortgage loans, referred as Agency RMBS. Its portfolio includes traditional pass-through Agency RMBS, such as mortgage pass through certificates and collateralized mortgage obligations; and structured Agency RMBS comprising interest only securities, inverse interest only securities, and principal only securities. The company has elected to be taxed as a real estate investment trust (REIT) for the United States federal income tax purposes. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to stockholders, if it annually distributes dividends equal to at least 90% of its REIT taxable income to its stockholders. Orchid Island Capital, Inc. was incorporated in 2010 and is headquartered in Vero Beach, Florida.

About Public Storage

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At December 31, 2023, we had: (i) interests in 3,044 self-storage facilities located in 40 states with approximately 218 million net rentable square feet in the United States and (ii) a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels: SHUR), which owned 275 self-storage facilities located in seven Western European nations with approximately 15 million net rentable square feet operated under the Shurgard brand. Our headquarters are located in Glendale, California.