Head-To-Head Comparison: Extra Space Storage (NYSE:EXR) and Healthcare Realty Trust (NYSE:HR)

Extra Space Storage (NYSE:EXR) and Healthcare Realty Trust (NYSE:HR) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Extra Space Storage and Healthcare Realty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extra Space Storage	0	11	6	0	2.35
Healthcare Realty Trust	1	7	3	0	2.18

Extra Space Storage presently has a consensus target price of $147.53, indicating a potential upside of 17.09%. Healthcare Realty Trust has a consensus target price of $18.89, indicating a potential upside of 9.60%. Given Extra Space Storage’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Extra Space Storage is more favorable than Healthcare Realty Trust.

Insider and Institutional Ownership

99.1% of Extra Space Storage shares are owned by institutional investors. 1.4% of Extra Space Storage shares are owned by insiders. Comparatively, 0.4% of Healthcare Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Extra Space Storage has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Healthcare Realty Trust has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Extra Space Storage	$3.26 billion	8.21	$854.68 million	$4.48	28.13
Healthcare Realty Trust	$1.18 billion	5.11	-$654.48 million	($1.06)	-16.26

Extra Space Storage has higher revenue and earnings than Healthcare Realty Trust. Healthcare Realty Trust 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Extra Space Storage	28.40%	6.56%	3.31%
Healthcare Realty Trust	-30.51%	-7.32%	-3.56%

Dividends

Extra Space Storage pays an annual dividend of $6.48 per share and has a dividend yield of 5.1%. Healthcare Realty Trust pays an annual dividend of $0.96 per share and has a dividend yield of 5.6%. Extra Space Storage pays out 144.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthcare Realty Trust pays out -90.6% of its earnings in the form of a dividend. Extra Space Storage has increased its dividend for 1 consecutive years. Healthcare Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Extra Space Storage beats Healthcare Realty Trust on 15 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 Healthcare Realty Trust

Healthcare Realty Trust, Inc. provides real estate investment services. It owns, leases, manages, acquires, finances, develops, and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States of America. The company was founded by David R. Emery in 1992 and is headquartered in Nashville, TN.