Orchid Island Capital (NYSE:ORC) & Public Storage (NYSE:PSA) Head to Head Review

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

Volatility and Risk

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Public Storage	$4.52 billion	12.98	$2.15 billion	$9.63	34.78
Orchid Island Capital	$177.57 million	3.44	-$39.23 million	$1.05	7.41

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.

Institutional and Insider Ownership

78.8% of Public Storage shares are held by institutional investors. Comparatively, 32.7% of Orchid Island Capital shares are held by institutional investors. 11.0% of Public Storage shares are held by insiders. Comparatively, 0.6% of Orchid Island Capital shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

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

Dividends

Public Storage pays an annual dividend of $12.00 per share and has a dividend yield of 3.6%. Orchid Island Capital pays an annual dividend of $1.44 per share and has a dividend yield of 18.5%. 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. 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.

Analyst Ratings

This is a summary of recent ratings and target prices for Public Storage and Orchid Island Capital, as reported by MarketBeat.

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

Public Storage currently has a consensus price target of $339.64, indicating a potential upside of 1.40%. Orchid Island Capital has a consensus price target of $9.50, indicating a potential upside of 22.03%. Given Orchid Island Capital’s higher possible upside, analysts plainly believe Orchid Island Capital is more favorable than Public Storage.

Summary

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

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.

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.