Extra Space Storage (NYSE:EXR) versus Host Hotels & Resorts (NASDAQ:HST) Head-To-Head Analysis

Extra Space Storage (NYSE:EXR) and Host Hotels & Resorts (NASDAQ:HST) are both large-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Risk & Volatility

Extra Space Storage has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Host Hotels & Resorts has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Profitability

This table compares Extra Space Storage and Host Hotels & Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Extra Space Storage	28.40%	6.53%	3.32%
Host Hotels & Resorts	11.12%	9.90%	5.07%

Insider and Institutional Ownership

99.1% of Extra Space Storage shares are held by institutional investors. Comparatively, 98.5% of Host Hotels & Resorts shares are held by institutional investors. 1.4% of Extra Space Storage shares are held by insiders. Comparatively, 1.4% of Host Hotels & Resorts shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Extra Space Storage and Host Hotels & Resorts”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Extra Space Storage	$3.34 billion	8.44	$854.68 million	$4.48	29.68
Host Hotels & Resorts	$5.93 billion	1.90	$697.00 million	$0.94	17.41

Extra Space Storage has higher earnings, but lower revenue than Host Hotels & Resorts. Host Hotels & Resorts 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Extra Space Storage and Host Hotels & Resorts, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extra Space Storage	0	10	6	0	2.38
Host Hotels & Resorts	0	7	5	1	2.54

Extra Space Storage presently has a consensus target price of $148.50, suggesting a potential upside of 11.68%. Host Hotels & Resorts has a consensus target price of $17.88, suggesting a potential upside of 9.23%. Given Extra Space Storage’s higher probable upside, analysts clearly believe Extra Space Storage is more favorable than Host Hotels & Resorts.

Dividends

Extra Space Storage pays an annual dividend of $6.48 per share and has a dividend yield of 4.9%. Host Hotels & Resorts pays an annual dividend of $0.80 per share and has a dividend yield of 4.9%. 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. Host Hotels & Resorts pays out 85.1% 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 has increased its dividend for 1 consecutive years and Host Hotels & Resorts has increased its dividend for 2 consecutive years. Host Hotels & Resorts is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Host Hotels & Resorts beats Extra Space Storage on 10 of the 18 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 Host Hotels & Resorts

Host Hotels & Resorts, Inc. is a real estate investment trust, which engages in the management of luxury and upper-upscale hotels. It operates through the following geographical segments: United States, Brazil, and Canada. The company was founded in 1927 and is headquartered in Bethesda, MD.