Head-To-Head Analysis: Medalist Diversified REIT (NASDAQ:MDRR) and Extra Space Storage (NYSE:EXR)

Extra Space Storage (NYSE:EXR) and Medalist Diversified REIT (NASDAQ:MDRR) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Institutional and Insider Ownership

99.1% of Extra Space Storage shares are held by institutional investors. Comparatively, 17.4% of Medalist Diversified REIT shares are held by institutional investors. 1.0% of Extra Space Storage shares are held by insiders. Comparatively, 77.6% of Medalist Diversified REIT shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Extra Space Storage and Medalist Diversified REIT”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	$3.41 billion	9.15	$974.00 million	$4.46	33.13
Medalist Diversified REIT	$10.40 million	1.86	-$2.39 million	$3.75	3.16

Extra Space Storage has higher revenue and earnings than Medalist Diversified REIT. Medalist Diversified REIT 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.

Profitability

This table compares Extra Space Storage and Medalist Diversified REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Extra Space Storage	27.66%	6.65%	3.28%
Medalist Diversified REIT	74.73%	-16.90%	-6.11%

Risk and Volatility

Extra Space Storage has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Medalist Diversified REIT has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.

Dividends

Extra Space Storage pays an annual dividend of $6.48 per share and has a dividend yield of 4.4%. Medalist Diversified REIT pays an annual dividend of $0.27 per share and has a dividend yield of 2.3%. Extra Space Storage pays out 145.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Medalist Diversified REIT pays out 7.2% of its earnings in the form of a dividend. Extra Space Storage has raised its dividend for 1 consecutive years and Medalist Diversified REIT has raised its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Extra Space Storage and Medalist Diversified REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extra Space Storage	0	10	6	0	2.38
Medalist Diversified REIT	0	1	0	0	2.00

Extra Space Storage presently has a consensus target price of $146.53, suggesting a potential downside of 0.84%. Given Extra Space Storage’s stronger consensus rating and higher probable upside, research analysts clearly believe Extra Space Storage is more favorable than Medalist Diversified REIT.

Summary

Extra Space Storage beats Medalist Diversified REIT on 13 of the 17 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 Medalist Diversified REIT

Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S. The Company's strategy is to focus on commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions.