Public Storage vs Extra Space Storage Which Performs Better?

Public Storage and Extra Space Storage are two of the leading companies in the self-storage industry, with both being publicly traded on the stock market. Investors looking to capitalize on the growing demand for storage solutions may consider investing in these stocks. Public Storage has a larger market share and a long-standing history in the industry, while Extra Space Storage is known for its rapid growth and innovative marketing strategies. Both companies offer investors the opportunity to benefit from the steady income generated by the self-storage sector.

Public Storage or Extra Space Storage?

When comparing Public Storage and Extra Space 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 Public Storage and Extra Space 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. Public Storage has a dividend yield of 2.81%, while Extra Space Storage has a dividend yield of 4.08%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Public Storage reports a 5-year dividend growth of 8.45% year and a payout ratio of 121.41%. On the other hand, Extra Space Storage reports a 5-year dividend growth of 14.04% year and a payout ratio of 169.98%.

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 Public Storage P/E ratio at 29.61 and Extra Space Storage's P/E ratio at 41.64. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Public Storage P/B ratio is 5.84 while Extra Space Storage's P/B ratio is 2.40.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $320.74 for Public Storage and $158.39 for Extra Space Storage. Over the past year, Public Storage's prices ranged from $256.31 to $369.99, with a yearly change of 44.35%. Extra Space Storage's prices fluctuated between $131.02 and $184.87, with a yearly change of 41.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.