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

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

Analyst Recommendations

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

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

CTO Realty Growth presently has a consensus target price of $21.00, indicating a potential upside of 6.46%. Extra Space Storage has a consensus target price of $171.25, indicating a potential upside of 13.60%. Given Extra Space Storage’s higher possible upside, analysts plainly believe Extra Space Storage is more favorable than CTO Realty Growth.

Volatility & Risk

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CTO Realty Growth	$109.12 million	5.42	$5.53 million	$0.59	33.43
Extra Space Storage	$2.56 billion	12.48	$803.20 million	$3.82	39.46

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

CTO Realty Growth pays an annual dividend of $1.52 per share and has a dividend yield of 7.7%. Extra Space Storage pays an annual dividend of $6.48 per share and has a dividend yield of 4.3%. 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. 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.

Profitability

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

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

Insider & Institutional Ownership

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

Summary

Extra Space Storage beats CTO Realty Growth on 13 of the 17 factors compared between the two stocks.

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.

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.