Analyzing EPR Properties (NYSE:EPR) and Extra Space Storage (NYSE:EXR)

EPR Properties (NYSE:EPR) and Extra Space Storage (NYSE:EXR) are both real estate companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EPR Properties	35.45%	11.34%	4.58%
Extra Space Storage	27.80%	6.70%	3.27%

Volatility and Risk

EPR Properties has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Extra Space Storage has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Valuation and Earnings

This table compares EPR Properties and Extra Space Storage”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EPR Properties	$718.36 million	6.44	$274.94 million	$3.11	19.43
Extra Space Storage	$3.38 billion	9.19	$974.00 million	$4.53	32.44

Extra Space Storage has higher revenue and earnings than EPR Properties. EPR Properties 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.

Dividends

EPR Properties pays an annual dividend of $3.72 per share and has a dividend yield of 6.2%. Extra Space Storage pays an annual dividend of $6.48 per share and has a dividend yield of 4.4%. EPR Properties pays out 119.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Extra Space Storage pays out 143.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EPR Properties has increased its dividend for 1 consecutive years and Extra Space Storage has increased its dividend for 1 consecutive years. EPR Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and target prices for EPR Properties and Extra Space Storage, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EPR Properties	0	4	9	0	2.69
Extra Space Storage	0	9	6	0	2.40

EPR Properties currently has a consensus price target of $65.45, indicating a potential upside of 8.31%. Extra Space Storage has a consensus price target of $147.71, indicating a potential upside of 0.51%. Given EPR Properties’ stronger consensus rating and higher probable upside, research analysts plainly believe EPR Properties is more favorable than Extra Space Storage.

Insider and Institutional Ownership

74.7% of EPR Properties shares are held by institutional investors. Comparatively, 99.1% of Extra Space Storage shares are held by institutional investors. 0.0% of EPR Properties 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, large money managers and endowments believe a stock is poised for long-term growth.

About EPR Properties

EPR Properties (NYSE:EPR) is the leading diversified experiential net lease real estate investment trust (REIT), specializing in select enduring experiential properties in the real estate industry. We focus on real estate venues that create value by facilitating out of home leisure and recreation experiences where consumers choose to spend their discretionary time and money. We have total assets of approximately $5.7 billion (after accumulated depreciation of approximately $1.4 billion) across 44 states. We adhere to rigorous underwriting and investing criteria centered on key industry, property and tenant level cash flow standards. We believe our focused approach provides a competitive advantage and the potential for stable and attractive returns.

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.