WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Extra Space Storage Inc generates 1242% more annual revenue ($3.51B vs $261.57M). EXR leads profitability with a 27.3% profit margin vs 2.2%. RWT appears more attractively valued with a PEG of 1.47. EXR 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

RWT

Hold

43

out of 100

Grade: D

Growth: 4.7Profit: 4.0Value: 7.0Quality: 2.5
Piotroski: 2/9Altman Z: 0.00
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
RWTUndervalued (+58.7%)

Margin of Safety

+58.7%

Fair Value

$16.21

Current Price

$3.55

$12.66 discount

UndervaluedFair: $16.21Overvalued

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

RWT1 strengths · Avg: 10.0/10
Price/BookValuation
0.5x10/10

Reasonable price relative to book value

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

RWT4 concerns · Avg: 3.0/10
Market CapQuality
$566.51M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.6%3/10

ROE of 0.6% — below average capital efficiency

Profit MarginProfitability
2.2%3/10

2.2% margin — thin

Operating MarginProfitability
0.1%3/10

Operating margin of 0.1%

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 : 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, Profit Margin. Debt-to-equity of 29.41 is elevated, increasing financial risk. Thin 2.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

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 (549M), providing more financial flexibility.

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

Bottom Line

EXR scores higher overall (55/100 vs 43/100), backed by strong 27.3% margins. RWT offers better value entry with a 58.7% 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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