Analyzing Extra Space Storage (NYSE:EXR) & Highlands REIT (OTCMKTS:HHDS)

Highlands REIT (OTCMKTS:HHDS) and Extra Space Storage (NYSE:EXR) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Highlands REIT	-25.09%	-4.66%	-2.80%
Extra Space Storage	28.40%	6.56%	3.31%

Institutional and Insider Ownership

0.0% of Highlands REIT shares are held by institutional investors. Comparatively, 99.1% of Extra Space Storage shares are held by institutional investors. 3.7% of Highlands REIT shares are held by insiders. Comparatively, 1.0% of Extra Space Storage shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Highlands REIT and Extra Space Storage, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Highlands REIT	0	0	0	0	0.00
Extra Space Storage	1	9	6	0	2.31

Extra Space Storage has a consensus target price of $144.67, suggesting a potential upside of 3.32%. Given Extra Space Storage’s stronger consensus rating and higher probable upside, analysts plainly believe Extra Space Storage is more favorable than Highlands REIT.

Earnings and Valuation

This table compares Highlands REIT and Extra Space Storage”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Highlands REIT	$36.08 million	0.34	-$1.00 million	N/A	N/A
Extra Space Storage	$3.26 billion	9.13	$854.68 million	$4.48	31.25

Extra Space Storage has higher revenue and earnings than Highlands REIT.

Risk & Volatility

Highlands REIT has a beta of 17.56, suggesting that its share price is 1,656% more volatile than the S&P 500. Comparatively, Extra Space Storage has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Summary

Extra Space Storage beats Highlands REIT on 11 of the 13 factors compared between the two stocks.

About Highlands REIT

We are a self-advised and self-administered real estate investment trust (REIT) created to own and manage substantially all of the non-core investment properties previously owned and managed by our former parent, InvenTrust Properties Corp., a Maryland corporation (InvenTrust). On April 28, 2016, we were spun-off from InvenTrust through a pro rata distribution (the Distribution) by InvenTrust of 100% of the outstanding shares of our common stock to holders of InvenTrust's common stock. Prior to or concurrent with the separation, we and InvenTrust engaged in certain reorganization transactions that were designed to consolidate substantially all of InvenTrust's remaining non-core investment properties in Highlands.

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.