Equinix (NASDAQ:EQIX) versus Extra Space Storage (NYSE:EXR) Head-To-Head Comparison

Extra Space Storage (NYSE:EXR) and Equinix (NASDAQ:EQIX) are both large-cap real estate companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Dividends

Extra Space Storage pays an annual dividend of $6.48 per share and has a dividend yield of 4.1%. Equinix pays an annual dividend of $20.64 per share and has a dividend yield of 1.9%. Extra Space Storage pays out 131.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Equinix pays out 124.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Extra Space Storage has increased its dividend for 1 consecutive years and Equinix has increased its dividend for 10 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Extra Space Storage and Equinix, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extra Space Storage	0	8	8	0	2.50
Equinix	0	4	26	2	2.94

Extra Space Storage presently has a consensus price target of $156.75, suggesting a potential downside of 1.24%. Equinix has a consensus price target of $1,234.13, suggesting a potential upside of 16.17%. Given Equinix’s stronger consensus rating and higher possible upside, analysts clearly believe Equinix is more favorable than Extra Space Storage.

Volatility & Risk

Extra Space Storage has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Equinix has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Extra Space Storage	29.90%	7.36%	3.55%
Equinix	16.38%	11.49%	3.96%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Extra Space Storage	$3.38 billion	9.81	$974.00 million	$4.92	32.26
Equinix	$9.22 billion	11.37	$1.35 billion	$16.65	63.81

Equinix has higher revenue and earnings than Extra Space Storage. Extra Space Storage is trading at a lower price-to-earnings ratio than Equinix, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

99.1% of Extra Space Storage shares are owned by institutional investors. Comparatively, 94.9% of Equinix shares are owned by institutional investors. 1.0% of Extra Space Storage shares are owned by insiders. Comparatively, 0.3% of Equinix shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Equinix beats Extra Space Storage on 13 of the 18 factors compared between the two stocks.

About Extra Space Storage

Extra Space Storage Inc. is a real estate investment trust (REIT) focused on self-storage. The company owns and operates facilities that rent storage units to individuals and businesses for personal and commercial use. In addition to operating its own properties, Extra Space manages self-storage facilities for third-party owners and offers related services, including tenant insurance. Its facilities serve customers across the United States. Founded in 1977 and headquartered in Salt Lake City, Utah, Extra Space expanded its national platform through acquisitions, including its 2023 merger with Life Storage.

About Equinix

Equinix, Inc. is a global digital infrastructure company that operates data centers where businesses can house their computing and networking equipment. Its colocation services support organizations seeking secure, reliable facilities for their IT systems. The company also provides interconnection services that enable customers to connect with cloud providers, networks, business partners and one another. Its Equinix Fabric platform offers software-defined connectivity, while its xScale facilities are designed to serve large-scale cloud and technology companies.