WallStSmart

Extra Space Storage Inc (EXR)vsRedwood Trust Inc (RWT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Extra Space Storage Inc generates 1977% more annual revenue ($3.48B vs $167.46M). EXR leads profitability with a 27.1% profit margin vs -54.7%. RWT appears more attractively valued with a PEG of 1.47. EXR earns a higher WallStSmart Score of 51/100 (C-).

EXR

Buy

51

out of 100

Grade: C-

Growth: 4.7Profit: 7.5Value: 3.3Quality: 3.0
Piotroski: 3/9Altman Z: 0.83

RWT

Hold

39

out of 100

Grade: F

Growth: 3.0Profit: 2.0Value: 7.0Quality: 3.0
Piotroski: 4/9Altman Z: 0.00
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EXROvervalued (-7.2%)

Margin of Safety

-7.2%

Fair Value

$132.86

Current Price

$152.85

$19.99 premium

UndervaluedFair: $132.86Overvalued
RWTUndervalued (+36.8%)

Margin of Safety

+36.8%

Fair Value

$10.60

Current Price

$4.68

$5.92 discount

UndervaluedFair: $10.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EXR3 strengths · Avg: 9.0/10
Operating MarginProfitability
44.0%10/10

Strong operational efficiency at 44.0%

Profit MarginProfitability
27.1%9/10

Keeps 27 of every $100 in revenue as profit

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

RWT1 strengths · Avg: 10.0/10
Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Areas to Watch

EXR4 concerns · Avg: 3.5/10
P/E RatioValuation
33.4x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
3.8%4/10

3.8% revenue growth

Return on EquityProfitability
7.1%3/10

ROE of 7.1% — below average capital efficiency

Debt/EquityHealth
1.093/10

Elevated debt levels

RWT4 concerns · Avg: 2.3/10
Market CapQuality
$641.11M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-9.6%2/10

ROE of -9.6% — below average capital efficiency

Revenue GrowthGrowth
-13.4%2/10

Revenue declined 13.4%

EPS GrowthGrowth
-52.6%2/10

Earnings declined 52.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : EXR

The strongest argument for EXR centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 27.1% and operating margin at 44.0%.

Bull Case : RWT

The strongest argument for RWT centers on Price/Book. PEG of 1.47 suggests the stock is reasonably priced for its growth.

Bear Case : EXR

The primary concerns for EXR are P/E Ratio, Revenue Growth, Return on Equity.

Bear Case : RWT

The primary concerns for RWT are Market Cap, Return on Equity, Revenue Growth. Debt-to-equity of 26.42 is elevated, increasing financial risk.

Key Dynamics to Monitor

EXR profiles as a value stock while RWT is a turnaround play — different risk/reward profiles.

RWT carries more volatility with a beta of 1.43 — expect wider price swings.

EXR is growing revenue faster at 3.8% — sustainability is the question.

EXR generates stronger free cash flow (386M), providing more financial flexibility.

Bottom Line

EXR scores higher overall (51/100 vs 39/100), backed by strong 27.1% margins. RWT offers better value entry with a 36.8% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Extra Space Storage Inc

REAL ESTATE · REIT - INDUSTRIAL · USA

Extra Space Storage is a real estate investment trust headquartered in Cottonwood Heights, Utah that invests in self storage units.

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Redwood Trust Inc

REAL ESTATE · REIT - MORTGAGE · USA

Redwood Trust, Inc., is a specialized finance company in the United States. The company is headquartered in Mill Valley, California.

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