Extra Space Storage Inc (EXR)vsSunstone Hotel Investors Inc (SHO)
EXR
Extra Space Storage Inc
$143.33
+1.99%
REAL ESTATE · Cap: $31.01B
SHO
Sunstone Hotel Investors Inc
$9.83
+0.92%
REAL ESTATE · Cap: $1.86B
Smart Verdict
WallStSmart Research — data-driven comparison
Extra Space Storage Inc generates 259% more annual revenue ($3.45B vs $960.13M). EXR leads profitability with a 28.3% profit margin vs 2.6%. SHO appears more attractively valued with a PEG of 3.00. EXR earns a higher WallStSmart Score of 57/100 (C).
EXR
Buy57
out of 100
Grade: C
SHO
Hold44
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+4.1%
Fair Value
$148.56
Current Price
$143.33
$5.23 discount
Margin of Safety
+51.3%
Fair Value
$19.04
Current Price
$9.83
$9.21 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 44.5%
Keeps 28 of every $100 in revenue as profit
Reasonable price relative to book value
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
4.6% revenue growth
ROE of 7.0% — below average capital efficiency
Elevated debt levels
Smaller company, higher risk/reward
ROE of 1.2% — below average capital efficiency
2.6% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : EXR
The strongest argument for EXR centers on Operating Margin, Profit Margin, Price/Book. Profitability is solid with margins at 28.3% and operating margin at 44.5%.
Bull Case : SHO
The strongest argument for SHO centers on Price/Book. Revenue growth of 10.3% demonstrates continued momentum.
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 Market Cap, Return on Equity, Profit Margin. A P/E of 245.8x leaves little room for execution misses. Thin 2.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
EXR carries more volatility with a beta of 1.27 — expect wider price swings.
SHO is growing revenue faster at 10.3% — sustainability is the question.
EXR generates stronger free cash flow (362M), providing more financial flexibility.
Monitor REIT - INDUSTRIAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
EXR scores higher overall (57/100 vs 44/100), backed by strong 28.3% margins. SHO offers better value entry with a 51.3% 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.
Visit Website →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.
Visit Website →Compare with Other REIT - INDUSTRIAL Stocks
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