Financial Contrast: Extra Space Storage (NYSE:EXR) versus Equinix (NASDAQ:EQIX)

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

Institutional and Insider Ownership

94.9% of Equinix shares are owned by institutional investors. Comparatively, 99.1% of Extra Space Storage shares are owned by institutional investors. 0.3% of Equinix shares are owned by insiders. Comparatively, 1.0% of Extra Space Storage shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

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

Profitability

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

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

Valuation & Earnings

This table compares Equinix 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
Equinix	$9.22 billion	10.68	$1.35 billion	$16.65	59.90
Extra Space Storage	$3.38 billion	9.91	$974.00 million	$4.92	32.58

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.

Dividends

Equinix pays an annual dividend of $20.64 per share and has a dividend yield of 2.1%. Extra Space Storage pays an annual dividend of $6.48 per share and has a dividend yield of 4.0%. 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 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 has increased its dividend for 10 consecutive years and Extra Space Storage has increased its dividend for 1 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Equinix and Extra Space Storage, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equinix	0	4	27	2	2.94
Extra Space Storage	0	8	8	0	2.50

Equinix currently has a consensus price target of $1,226.97, indicating a potential upside of 23.02%. Extra Space Storage has a consensus price target of $156.75, indicating a potential downside of 2.21%. Given Equinix’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Equinix is more favorable than Extra Space Storage.

Summary

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

About Equinix

Equinix (Nasdaq: EQIX) is the world's digital infrastructure company . Digital leaders harness Equinix's trusted platform to bring together and interconnect foundational infrastructure at software speed. Equinix enables organizations to access all the right places, partners and possibilities to scale with agility, speed the launch of digital services, deliver world-class experiences and multiply their value, while supporting their sustainability goals.

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.