Analyzing Extra Space Storage (EXR) and National Storage Affiliates Trust (NSA)
Extra Space Storage (NYSE: EXR) and National Storage Affiliates Trust (NYSE:NSA) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitabiliy, valuation and analyst recommendations.
This is a summary of recent ratings and recommmendations for Extra Space Storage and National Storage Affiliates Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Extra Space Storage||2||7||2||1||2.17|
|National Storage Affiliates Trust||0||1||2||0||2.67|
Extra Space Storage currently has a consensus price target of $89.11, indicating a potential upside of 16.21%. National Storage Affiliates Trust has a consensus price target of $25.67, indicating a potential upside of 14.48%. Given Extra Space Storage’s higher possible upside, research analysts clearly believe Extra Space Storage is more favorable than National Storage Affiliates Trust.
Earnings & Valuation
This table compares Extra Space Storage and National Storage Affiliates Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Extra Space Storage||$1.04 billion||9.26||$679.10 million||$2.88||26.63|
|National Storage Affiliates Trust||$218.69 million||4.54||$123.05 million||$0.16||140.13|
Extra Space Storage has higher revenue and earnings than National Storage Affiliates Trust. Extra Space Storage is trading at a lower price-to-earnings ratio than National Storage Affiliates Trust, indicating that it is currently the more affordable of the two stocks.
This table compares Extra Space Storage and National Storage Affiliates Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Extra Space Storage||36.40%||14.92%||5.54%|
|National Storage Affiliates Trust||7.38%||1.94%||0.97%|
Institutional & Insider Ownership
89.1% of National Storage Affiliates Trust shares are owned by institutional investors. 3.7% of Extra Space Storage shares are owned by company insiders. Comparatively, 17.7% of National Storage Affiliates Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Extra Space Storage pays an annual dividend of $3.12 per share and has a dividend yield of 4.1%. National Storage Affiliates Trust pays an annual dividend of $1.04 per share and has a dividend yield of 4.6%. Extra Space Storage pays out 108.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Storage Affiliates Trust pays out 650.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. National Storage Affiliates Trust has raised its dividend for 6 consecutive years. National Storage Affiliates Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
Extra Space Storage has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, National Storage Affiliates Trust has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.
Extra Space Storage beats National Storage Affiliates Trust on 10 of the 17 factors compared between the two stocks.
About Extra Space Storage
Extra Space Storage Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company owns, operates, manages, acquires, develops and redevelops self-storage properties located throughout the United States. The Company operates through three segments: rental operations; tenant reinsurance, and property management, acquisition and development. The Company’s rental operations activities include rental operations of stores in which it has an ownership interest. The Tenant reinsurance activities include the reinsurance of risks relating to the loss of goods stored by tenants in its stores. The Company’s property management, acquisition and development activities include managing, acquiring, developing and selling stores. The Company’s interest in its stores is held through its operating partnership, Extra Space Storage LP (the Operating Partnership). Its primary assets are general partner and limited partner interests in the Operating Partnership.
About National Storage Affiliates Trust
National Storage Affiliates Trust is an integrated, self-administered and self-managed real estate investment trust. The Company is focused on the ownership, operation and acquisition of self-storage properties located within various metropolitan statistical areas (MSAs) across the United States. The Company’s operating partnership subsidiary is NSA OP, LP. As of December 31, 2016, the Company held ownership interests in and operated a geographically diversified portfolio of 448 self storage properties, located in 23 states, comprising approximately 27.6 million rentable square feet, configured in approximately 220,000 storage units. The Company’s self-storage properties are located in various states of the United States, such as California, Florida, Indiana, Ohio, Louisiana, Oregon, New Hampshire, Oklahoma, Texas, Nevada, New Mexico, Arizona, Colorado and Georgia.
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