Critical Review: Extra Space Storage (NYSE:EXR) vs. Mobile Infrastructure (NASDAQ:BEEP)

Mobile Infrastructure (NASDAQ:BEEP) and Extra Space Storage (NYSE:EXR) are both real estate companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.

Valuation & Earnings

This table compares Mobile Infrastructure 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
Mobile Infrastructure	$35.08 million	3.00	-$21.44 million	($0.60)	-4.25
Extra Space Storage	$3.38 billion	8.98	$974.00 million	$4.53	31.69

Extra Space Storage has higher revenue and earnings than Mobile Infrastructure. Mobile Infrastructure 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.

Risk and Volatility

Mobile Infrastructure has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Extra Space Storage has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mobile Infrastructure	1	0	2	0	2.33
Extra Space Storage	0	8	8	0	2.50

Mobile Infrastructure presently has a consensus target price of $6.25, suggesting a potential upside of 145.10%. Extra Space Storage has a consensus target price of $148.67, suggesting a potential upside of 3.55%. Given Mobile Infrastructure’s higher probable upside, research analysts plainly believe Mobile Infrastructure is more favorable than Extra Space Storage.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mobile Infrastructure	-67.22%	-11.25%	-4.69%
Extra Space Storage	27.80%	6.70%	3.27%

Institutional & Insider Ownership

84.3% of Mobile Infrastructure shares are owned by institutional investors. Comparatively, 99.1% of Extra Space Storage shares are owned by institutional investors. 36.6% of Mobile Infrastructure shares are owned by insiders. Comparatively, 1.0% of Extra Space Storage shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Extra Space Storage beats Mobile Infrastructure on 11 of the 13 factors compared between the two stocks.

About Mobile Infrastructure

Mobile Infrastructure Corporation is a Maryland corporation. The Company owns a diversified portfolio of parking assets primarily located in the Midwest and Southwest. As of December 31, 2023, the Company owned 43 parking facilities in 21 separate markets throughout the United States, with a total of 15,700 parking spaces and approximately 5.4 million square feet. The Company also owns approximately 0.2 million square feet of retail/commercial space adjacent to its parking facilities.

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.