Rayonier (NYSE:RYN) & Extra Space Storage (NYSE:EXR) Critical Survey

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

Dividends

Extra Space Storage pays an annual dividend of $6.48 per share and has a dividend yield of 4.4%. Rayonier pays an annual dividend of $1.04 per share and has a dividend yield of 4.9%. Extra Space Storage pays out 143.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rayonier pays out 231.1% 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.

Volatility & Risk

Extra Space Storage has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Rayonier has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Extra Space Storage and Rayonier, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extra Space Storage	0	10	6	0	2.38
Rayonier	1	4	0	1	2.17

Extra Space Storage currently has a consensus target price of $147.73, suggesting a potential upside of 1.20%. Rayonier has a consensus target price of $24.80, suggesting a potential upside of 15.81%. Given Rayonier’s higher possible upside, analysts clearly believe Rayonier is more favorable than Extra Space Storage.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Extra Space Storage	$3.38 billion	9.13	$974.00 million	$4.53	32.23
Rayonier	$484.50 million	13.29	$474.38 million	$0.45	47.59

Extra Space Storage has higher revenue and earnings than Rayonier. Extra Space Storage is trading at a lower price-to-earnings ratio than Rayonier, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

99.1% of Extra Space Storage shares are owned by institutional investors. Comparatively, 89.1% of Rayonier shares are owned by institutional investors. 1.0% of Extra Space Storage shares are owned by company insiders. Comparatively, 0.9% of Rayonier shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Extra Space Storage	27.80%	6.70%	3.27%
Rayonier	7.83%	3.49%	2.37%

Summary

Extra Space Storage beats Rayonier on 13 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 Rayonier

Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. As of December 31, 2023, Rayonier owned or leased under long-term agreements approximately 2.7 million acres of timberlands located in the U.S. South (1.85 million acres), U.S. Pacific Northwest (418,000 acres) and New Zealand (421,000 acres).