Critical Analysis: Extra Space Storage (NYSE:EXR) and Power REIT (NYSE:PW)

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

Insider and Institutional Ownership

99.1% of Extra Space Storage shares are held by institutional investors. Comparatively, 14.6% of Power REIT shares are held by institutional investors. 1.0% of Extra Space Storage shares are held by company insiders. Comparatively, 22.4% of Power REIT shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Extra Space Storage has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Power REIT has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Extra Space Storage	27.80%	6.70%	3.27%
Power REIT	-752.26%	-215.55%	-39.65%

Valuation & Earnings

This table compares Extra Space Storage and Power REIT”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	9.15	$974.00 million	$4.53	32.29
Power REIT	$2.79 million	1.05	-$14.37 million	($6.26)	-1.27

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extra Space Storage	0	10	6	0	2.38
Power REIT	0	0	0	0	0.00

Extra Space Storage currently has a consensus target price of $148.53, indicating a potential upside of 1.54%. Given Extra Space Storage’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Extra Space Storage is more favorable than Power REIT.

Summary

Extra Space Storage beats Power REIT on 12 of the 14 factors compared between the two stocks.

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.

About Power REIT

Power REIT, with a focus on the Triple Bottom Line and a commitment to Profit, Planet and People is a specialized real estate investment trust (REIT) that owns sustainable real estate related to infrastructure assets including properties for Controlled Environment Agriculture, Renewable Energy and Transportation. Power REIT is actively seeking to expand its real estate portfolio related to Controlled Environment Agriculture in the form of greenhouses for the cultivation of food and cannabis.