Financial Contrast: OUTFRONT Media (NYSE:OUT) versus Extra Space Storage (NYSE:EXR)

Extra Space Storage (NYSE:EXRGet Free Report) and OUTFRONT Media (NYSE:OUTGet Free Report) are both real estate companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Volatility and Risk

Extra Space Storage has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, OUTFRONT Media has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Extra Space Storage and OUTFRONT Media, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Extra Space Storage 0 10 6 0 2.38
OUTFRONT Media 0 1 6 0 2.86

Extra Space Storage presently has a consensus target price of $147.87, indicating a potential upside of 0.43%. OUTFRONT Media has a consensus target price of $34.00, indicating a potential upside of 13.55%. Given OUTFRONT Media’s stronger consensus rating and higher possible upside, analysts clearly believe OUTFRONT Media is more favorable than Extra Space Storage.

Insider & Institutional Ownership

99.1% of Extra Space Storage shares are held by institutional investors. 1.0% of Extra Space Storage shares are held by insiders. Comparatively, 0.5% of OUTFRONT Media shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Extra Space Storage pays an annual dividend of $6.48 per share and has a dividend yield of 4.4%. OUTFRONT Media pays an annual dividend of $1.20 per share and has a dividend yield of 4.0%. 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. OUTFRONT Media pays out 86.3% 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 increased its dividend for 1 consecutive years. Extra Space Storage is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Extra Space Storage and OUTFRONT Media’s 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%
OUTFRONT Media 12.66% 37.44% 4.65%

Valuation and Earnings

This table compares Extra Space Storage and OUTFRONT Media”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Extra Space Storage $3.38 billion 9.21 $974.00 million $4.53 32.50
OUTFRONT Media $1.83 billion 2.88 $147.00 million $1.39 21.54

Extra Space Storage has higher revenue and earnings than OUTFRONT Media. OUTFRONT Media 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.

Summary

Extra Space Storage beats OUTFRONT Media on 10 of the 16 factors compared between the two stocks.

About Extra Space Storage

(Get Free Report)

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 OUTFRONT Media

(Get Free Report)

OUTFRONT Media, Inc. leases advertising space on out-of-home advertising structures and sites. Its inventory consists of billboard displays, which are primarily located on the most heavily traveled highways & roadways, and transit advertising displays operated under exclusive multi-year contracts with municipalities in large cities across the U.S. and Canada. It operates through the U.S. Media and other segments. The U.S. Media segment includes U.S. Billboard and Transit. The company was founded in 1938 and is headquartered in New York, NY.

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