Extra Space Storage (NYSE:EXR – Get Free Report) and EPR Properties (NYSE:EPR – Get Free Report) are both real estate companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.
Dividends
Extra Space Storage pays an annual dividend of $6.48 per share and has a dividend yield of 4.4%. EPR Properties pays an annual dividend of $3.72 per share and has a dividend yield of 6.1%. Extra Space Storage pays out 143.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EPR Properties pays out 119.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Extra Space Storage has raised its dividend for 1 consecutive years and EPR Properties has raised its dividend for 1 consecutive years. EPR Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Extra Space Storage has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, EPR Properties has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Extra Space Storage | $3.45 billion | 9.07 | $974.00 million | $4.53 | 32.67 |
| EPR Properties | $699.01 million | 6.71 | $274.94 million | $3.11 | 19.69 |
Extra Space Storage has higher revenue and earnings than EPR Properties. EPR Properties is trading at a lower price-to-earnings ratio than Extra Space Storage, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
99.1% of Extra Space Storage shares are owned by institutional investors. Comparatively, 74.7% of EPR Properties shares are owned by institutional investors. 1.0% of Extra Space Storage shares are owned by insiders. Comparatively, 0.0% of EPR Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Extra Space Storage and EPR Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Extra Space Storage | 27.80% | 6.70% | 3.27% |
| EPR Properties | 35.45% | 11.34% | 4.58% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for Extra Space Storage and EPR Properties, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Extra Space Storage | 0 | 10 | 6 | 0 | 2.38 |
| EPR Properties | 0 | 5 | 8 | 0 | 2.62 |
Extra Space Storage currently has a consensus target price of $147.73, indicating a potential downside of 0.17%. EPR Properties has a consensus target price of $64.94, indicating a potential upside of 6.06%. Given EPR Properties’ stronger consensus rating and higher possible upside, analysts clearly believe EPR Properties is more favorable than Extra Space Storage.
About Extra Space Storage
Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of December 31, 2023, the Company owned and/or operated 3,714 self-storage stores in 42 states and Washington, D.C. The Company's stores comprise approximately 2.6 million units and approximately 283.0 million square feet of rentable space operating under the Extra Space, Life Storage and Storage Express brands. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. It is the largest operator of self-storage properties in the United States.
About EPR Properties
EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues that create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately $5.7 billion (after accumulated depreciation of approximately $1.4 billion) across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.
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