WallStSmart

Extra Space Storage Inc (EXR)vsSunstone Hotel Investors Inc (SHO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Extra Space Storage Inc generates 250% more annual revenue ($3.51B vs $1.00B). EXR leads profitability with a 27.3% profit margin vs 5.3%. SHO appears more attractively valued with a PEG of 3.00. SHO earns a higher WallStSmart Score of 55/100 (C).

EXR

Buy

55

out of 100

Grade: C

Growth: 6.0Profit: 7.5Value: 3.3Quality: 3.0
Piotroski: 3/9Altman Z: 0.83

SHO

Buy

55

out of 100

Grade: C

Growth: 6.7Profit: 4.5Value: 5.3Quality: 6.0
Piotroski: 3/9Altman Z: 1.24
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EXROvervalued (-6.3%)

Margin of Safety

-6.3%

Fair Value

$134.05

Current Price

$137.64

$3.59 premium

UndervaluedFair: $134.05Overvalued
SHOUndervalued (+35.7%)

Margin of Safety

+35.7%

Fair Value

$14.44

Current Price

$10.98

$3.46 discount

UndervaluedFair: $14.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EXR3 strengths · Avg: 9.0/10
Operating MarginProfitability
45.9%10/10

Strong operational efficiency at 45.9%

Profit MarginProfitability
27.3%9/10

Keeps 27 of every $100 in revenue as profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

SHO2 strengths · Avg: 10.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

EPS GrowthGrowth
365.2%10/10

Earnings expanding 365.2% YoY

Areas to Watch

EXR4 concerns · Avg: 3.5/10
P/E RatioValuation
30.7x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
3.8%4/10

3.8% revenue growth

Return on EquityProfitability
7.2%3/10

ROE of 7.2% — below average capital efficiency

Debt/EquityHealth
1.093/10

Elevated debt levels

SHO4 concerns · Avg: 2.8/10
Return on EquityProfitability
2.0%3/10

ROE of 2.0% — below average capital efficiency

Profit MarginProfitability
5.3%3/10

5.3% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.002/10

Expensive relative to growth rate

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 27.3% and operating margin at 45.9%.

Bull Case : SHO

The strongest argument for SHO centers on Price/Book, EPS Growth.

Bear Case : EXR

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

Bear Case : SHO

The primary concerns for SHO are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 50.0x leaves little room for execution misses.

Key Dynamics to Monitor

EXR carries more volatility with a beta of 1.18 — expect wider price swings.

SHO is growing revenue faster at 6.2% — sustainability is the question.

EXR generates stronger free cash flow (549M), providing more financial flexibility.

Monitor REIT - INDUSTRIAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

EXR scores higher overall (55/100 vs 55/100), backed by strong 27.3% margins. SHO offers better value entry with a 35.7% margin of safety. Both earn "Buy" and "Buy" 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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Sunstone Hotel Investors Inc

REAL ESTATE · REIT - HOTEL & MOTEL · USA

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (REIT) that, as of the date of this release, has interests in 19 hotels with 9,997 rooms.

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