Extra Space Storage (NYSE:EXR – Get Free Report) and Equinix (NASDAQ:EQIX – Get Free Report) are both large-cap real estate companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.
Dividends
Extra Space Storage pays an annual dividend of $6.48 per share and has a dividend yield of 4.1%. Equinix pays an annual dividend of $20.64 per share and has a dividend yield of 2.0%. Extra Space Storage pays out 131.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equinix pays out 124.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Extra Space Storage has increased its dividend for 1 consecutive years and Equinix has increased its dividend for 10 consecutive years.
Valuation and Earnings
This table compares Extra Space Storage and Equinix”s top-line 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 | 9.88 | $974.00 million | $4.92 | 32.49 |
| Equinix | $9.22 billion | 11.29 | $1.35 billion | $16.65 | 63.33 |
Equinix has higher revenue and earnings than Extra Space Storage. Extra Space Storage is trading at a lower price-to-earnings ratio than Equinix, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
99.1% of Extra Space Storage shares are held by institutional investors. Comparatively, 94.9% of Equinix shares are held by institutional investors. 1.0% of Extra Space Storage shares are held by company insiders. Comparatively, 0.3% of Equinix shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Extra Space Storage and Equinix, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Extra Space Storage | 0 | 8 | 8 | 0 | 2.50 |
| Equinix | 0 | 4 | 26 | 2 | 2.94 |
Extra Space Storage presently has a consensus target price of $156.75, suggesting a potential downside of 1.95%. Equinix has a consensus target price of $1,234.13, suggesting a potential upside of 17.03%. Given Equinix’s stronger consensus rating and higher possible upside, analysts plainly believe Equinix is more favorable than Extra Space Storage.
Risk and Volatility
Extra Space Storage has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Equinix has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.
Profitability
This table compares Extra Space Storage and Equinix’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Extra Space Storage | 29.90% | 7.36% | 3.55% |
| Equinix | 16.38% | 11.49% | 3.96% |
Summary
Equinix beats Extra Space Storage on 13 of the 18 factors compared between the two stocks.
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 Equinix
Equinix (Nasdaq: EQIX) is the world's digital infrastructure company . Digital leaders harness Equinix's trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.
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