Reviewing Extra Space Storage (NYSE:EXR) and Transcontinental Realty Investors (NYSE:TCI)

Extra Space Storage (NYSE:EXR) and Transcontinental Realty Investors (NYSE:TCI) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Valuation & Earnings

This table compares Extra Space Storage and Transcontinental Realty Investors’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Extra Space Storage	$2.56 billion	13.49	$803.20 million	$4.49	36.33
Transcontinental Realty Investors	$49.90 million	N/A	$5.94 million	$0.58	53.74

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Extra Space Storage and Transcontinental Realty Investors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Extra Space Storage	1	6	5	0	2.33
Transcontinental Realty Investors	0	0	0	0	N/A

Extra Space Storage presently has a consensus target price of $157.67, indicating a potential downside of 3.33%. Given Extra Space Storage’s higher possible upside, equities analysts clearly believe Extra Space Storage is more favorable than Transcontinental Realty Investors.

Volatility & Risk

Extra Space Storage has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Transcontinental Realty Investors has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.

Institutional and Insider Ownership

99.1% of Extra Space Storage shares are owned by institutional investors. 1.4% of Extra Space Storage shares are owned by insiders. Comparatively, 85.6% of Transcontinental Realty Investors shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Extra Space Storage and Transcontinental Realty Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Extra Space Storage	29.10%	6.76%	3.58%
Transcontinental Realty Investors	9.91%	0.59%	0.47%

Summary

Extra Space Storage beats Transcontinental Realty Investors on 10 of the 12 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 Transcontinental Realty Investors

Transcontinental Realty Investors, Inc., a Dallas-based real estate investment company, holds a diverse portfolio of equity real estate located across the U.S., including office buildings, apartments, shopping centers, and developed and undeveloped land. The Company invests in real estate through direct ownership, leases and partnerships and invests in mortgage loans on real estate. The Company also holds mortgage receivables.