Extra Space Storage (NYSE:EXR) vs. W. P. Carey (NYSE:WPC) Head-To-Head Review

Extra Space Storage (NYSE:EXRGet Rating) and W. P. Carey (NYSE:WPCGet Rating) are both large-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Risk and Volatility

Extra Space Storage has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, W. P. Carey has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500.

Valuation & Earnings

This table compares Extra Space Storage and W. P. Carey’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 $1.58 billion 14.76 $827.65 million $6.16 28.15
W. P. Carey $1.33 billion 11.37 $409.99 million $2.76 28.43

Extra Space Storage has higher revenue and earnings than W. P. Carey. Extra Space Storage is trading at a lower price-to-earnings ratio than W. P. Carey, indicating that it is currently the more affordable of the two stocks.

Dividends

Extra Space Storage pays an annual dividend of $6.00 per share and has a dividend yield of 3.5%. W. P. Carey pays an annual dividend of $4.23 per share and has a dividend yield of 5.4%. Extra Space Storage pays out 97.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. W. P. Carey pays out 153.3% 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 raised its dividend for 14 consecutive years and W. P. Carey has raised its dividend for 26 consecutive years. W. P. Carey is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Extra Space Storage and W. P. Carey, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Extra Space Storage 1 6 8 0 2.47
W. P. Carey 0 1 6 0 2.86

Extra Space Storage presently has a consensus target price of $198.29, indicating a potential upside of 15.01%. W. P. Carey has a consensus target price of $88.67, indicating a potential upside of 13.98%. Given Extra Space Storage’s higher possible upside, analysts plainly believe Extra Space Storage is more favorable than W. P. Carey.

Profitability

This table compares Extra Space Storage and W. P. Carey’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Extra Space Storage 50.76% 23.42% 8.39%
W. P. Carey 37.65% 6.88% 3.36%

Institutional and Insider Ownership

95.4% of Extra Space Storage shares are owned by institutional investors. Comparatively, 58.9% of W. P. Carey shares are owned by institutional investors. 1.5% of Extra Space Storage shares are owned by company insiders. Comparatively, 1.1% of W. P. Carey shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Extra Space Storage beats W. P. Carey on 13 of the 17 factors compared between the two stocks.

Extra Space Storage Company Profile (Get Rating)

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 September 30, 2020, the Company owned and/or operated 1,906 self-storage stores in 40 states, Washington, D.C. and Puerto Rico. The Company's stores comprise approximately 1.4 million units and approximately 147.5 million square feet of rentable space. 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. The Company is the second largest owner and/or operator of self-storage stores in the United States and is the largest self-storage management company in the United States.

W. P. Carey Company Profile (Get Rating)

W. P. Carey ranks among the largest net lease REITs with an enterprise value of approximately $18 billion and a diversified portfolio of operationally-critical commercial real estate that includes 1,215 net lease properties covering approximately 142 million square feet as of September 30, 2020. For nearly five decades, the company has invested in high-quality single-tenant industrial, warehouse, office, retail and self-storage properties subject to long-term net leases with built-in rent escalators. Its portfolio is located primarily in the U.S. and Northern and Western Europe and is well-diversified by tenant, property type, geographic location and tenant industry.

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