Extra Space Storage vs Public Storage Which Outperforms?

Extra Space Storage and Public Storage are both well-known companies in the self-storage industry, offering storage solutions to consumers and businesses alike. Investors may be interested in comparing the stocks of these two companies to determine which may be a more profitable investment. Extra Space Storage has demonstrated strong financial performance and growth in recent years, while Public Storage has a long-standing reputation in the industry. This comparison of Extra Space Storage vs Public Storage stocks will delve into key financial metrics and market trends to help investors make informed decisions.

Extra Space Storage or Public Storage?

When comparing Extra Space Storage and Public Storage, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Extra Space Storage and Public Storage.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Extra Space Storage has a dividend yield of 3.07%, while Public Storage has a dividend yield of 3.78%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Extra Space Storage reports a 5-year dividend growth of 14.04% year and a payout ratio of 169.98%. On the other hand, Public Storage reports a 5-year dividend growth of 8.45% year and a payout ratio of 121.41%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Extra Space Storage P/E ratio at 41.45 and Public Storage's P/E ratio at 29.31. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Extra Space Storage P/B ratio is 2.39 while Public Storage's P/B ratio is 5.79.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Extra Space Storage has seen a 5-year revenue growth of 0.60%, while Public Storage's is 0.62%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Extra Space Storage's ROE at 5.68% and Public Storage's ROE at 19.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $157.46 for Extra Space Storage and $316.31 for Public Storage. Over the past year, Extra Space Storage's prices ranged from $131.02 to $184.87, with a yearly change of 41.10%. Public Storage's prices fluctuated between $256.31 and $369.99, with a yearly change of 44.35%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.