Comparing Extra Space Storage (NYSE:EXR) & CTO Realty Growth (NYSE:CTO)

Extra Space Storage (NYSE:EXR) and CTO Realty Growth (NYSE:CTO) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Valuation & Earnings

This table compares Extra Space Storage and CTO Realty Growth”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Extra Space Storage	$2.56 billion	12.55	$803.20 million	$3.82	39.67
CTO Realty Growth	$109.12 million	5.30	$5.53 million	$0.59	32.70

Extra Space Storage has higher revenue and earnings than CTO Realty Growth. CTO Realty Growth 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

Extra Space Storage pays an annual dividend of $6.48 per share and has a dividend yield of 4.3%. CTO Realty Growth pays an annual dividend of $1.52 per share and has a dividend yield of 7.9%. Extra Space Storage pays out 169.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CTO Realty Growth pays out 257.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Extra Space Storage	25.35%	5.51%	3.03%
CTO Realty Growth	17.10%	4.04%	1.92%

Insider and Institutional Ownership

99.1% of Extra Space Storage shares are owned by institutional investors. Comparatively, 67.2% of CTO Realty Growth shares are owned by institutional investors. 1.4% of Extra Space Storage shares are owned by company insiders. Comparatively, 5.3% of CTO Realty Growth shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Extra Space Storage and CTO Realty Growth, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extra Space Storage	1	7	4	0	2.25
CTO Realty Growth	0	0	2	2	3.50

Extra Space Storage currently has a consensus price target of $171.25, suggesting a potential upside of 13.01%. CTO Realty Growth has a consensus price target of $21.00, suggesting a potential upside of 8.84%. Given Extra Space Storage’s higher probable upside, research analysts clearly believe Extra Space Storage is more favorable than CTO Realty Growth.

Risk and Volatility

Extra Space Storage has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, CTO Realty Growth has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

Summary

Extra Space Storage beats CTO Realty Growth on 13 of the 17 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 CTO Realty Growth

CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.