Head-To-Head Analysis: Extra Space Storage (NYSE:EXR) & Gladstone Land (NASDAQ:LANDO)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gladstone Land	0	0	0	0	0.00
Extra Space Storage	0	10	6	0	2.38

Extra Space Storage has a consensus price target of $147.73, indicating a potential downside of 0.17%. Given Extra Space Storage’s stronger consensus rating and higher probable upside, analysts clearly believe Extra Space Storage is more favorable than Gladstone Land.

Institutional and Insider Ownership

99.1% of Extra Space Storage shares are held by institutional investors. 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gladstone Land	N/A	N/A	N/A
Extra Space Storage	27.80%	6.70%	3.27%

Dividends

Gladstone Land pays an annual dividend of $1.50 per share and has a dividend yield of 6.9%. Extra Space Storage pays an annual dividend of $6.48 per share and has a dividend yield of 4.4%. 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. Extra Space Storage has increased its dividend for 1 consecutive years.

Valuation and Earnings

This table compares Gladstone Land and Extra Space Storage”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gladstone Land	$88.48 million	N/A	N/A	N/A	N/A
Extra Space Storage	$3.38 billion	9.26	$974.00 million	$4.53	32.67

Extra Space Storage has higher revenue and earnings than Gladstone Land.

Summary

Extra Space Storage beats Gladstone Land on 10 of the 12 factors compared between the two stocks.

About Gladstone Land

Founded in 1997, Gladstone Land is a publicly traded real estate investment trust that acquires and owns farmland and farm-related properties located in major agricultural markets in the U.S. and leases its properties to unrelated third-party farmers. The Company, which reports the aggregate fair value of its farmland holdings on a quarterly basis, currently owns 169 farms, comprised of approximately 116,000 acres in 15 different states and over 45,000 acre-feet of banked water in California, valued at a total of approximately $1.6 billion. Gladstone Land's farms are predominantly located in regions where its tenants are able to grow fresh produce annual row crops, such as berries and vegetables, which are generally planted and harvested annually. The Company also owns farms growing permanent crops, such as almonds, apples, cherries, figs, lemons, olives, pistachios, and other orchards, as well as blueberry groves and vineyards, which are generally planted every 20-plus years and harvested annually. Approximately 40% of the Company's fresh produce acreage is either organic or in transition to become organic, and over 10% of its permanent crop acreage falls into this category. The Company may also acquire property related to farming, such as cooling facilities, processing buildings, packaging facilities, and distribution centers. Gladstone Land pays monthly distributions to its stockholders and has paid 129 consecutive monthly cash distributions on its common stock since its initial public offering in January 2013. The Company has increased its common distributions 32 times over the prior 35 quarters, and the current per-share distribution on its common stock is $0.0464 per month, or $0.5568 per year.

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.