Extra Space Storage (NYSE:EXR – Get Free Report) and Innovative Industrial Properties (NYSE:IIPR – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Profitability
This table compares Extra Space Storage and Innovative Industrial Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Extra Space Storage | 28.40% | 6.56% | 3.31% |
| Innovative Industrial Properties | 45.80% | 6.77% | 5.40% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Extra Space Storage and Innovative Industrial Properties, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Extra Space Storage | 0 | 11 | 6 | 0 | 2.35 |
| Innovative Industrial Properties | 3 | 2 | 1 | 0 | 1.67 |
Dividends
Extra Space Storage pays an annual dividend of $6.48 per share and has a dividend yield of 4.7%. Innovative Industrial Properties pays an annual dividend of $7.60 per share and has a dividend yield of 15.0%. Extra Space Storage pays out 144.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Innovative Industrial Properties pays out 180.1% 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 and Innovative Industrial Properties has increased its dividend for 4 consecutive years. Innovative Industrial Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares Extra Space Storage and Innovative Industrial Properties”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Extra Space Storage | $3.26 billion | 9.07 | $854.68 million | $4.48 | 31.06 |
| Innovative Industrial Properties | $308.52 million | 4.59 | $161.66 million | $4.22 | 11.99 |
Extra Space Storage has higher revenue and earnings than Innovative Industrial Properties. Innovative Industrial Properties is trading at a lower price-to-earnings ratio than Extra Space Storage, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
99.1% of Extra Space Storage shares are owned by institutional investors. Comparatively, 70.6% of Innovative Industrial Properties shares are owned by institutional investors. 1.4% of Extra Space Storage shares are owned by insiders. Comparatively, 2.0% of Innovative Industrial Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk & Volatility
Extra Space Storage has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, Innovative Industrial Properties has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.
Summary
Extra Space Storage beats Innovative Industrial Properties on 9 of the 17 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 Innovative Industrial Properties
Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017.
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