WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Extra Space Storage Inc generates 1843% more annual revenue ($3.45B vs $177.37M). EXR leads profitability with a 28.3% profit margin vs -39.5%. RWT appears more attractively valued with a PEG of 1.47. RWT earns a higher WallStSmart Score of 57/100 (C).

EXR

Buy

57

out of 100

Grade: C

Growth: 6.7Profit: 7.5Value: 4.0Quality: 3.5
Piotroski: 3/9Altman Z: 0.90

RWT

Buy

57

out of 100

Grade: C

Growth: 5.7Profit: 4.0Value: 7.0Quality: 4.5
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EXRUndervalued (+4.1%)

Margin of Safety

+4.1%

Fair Value

$148.56

Current Price

$143.33

$5.23 discount

UndervaluedFair: $148.56Overvalued
RWTUndervalued (+48.4%)

Margin of Safety

+48.4%

Fair Value

$12.98

Current Price

$5.56

$7.42 discount

UndervaluedFair: $12.98Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EXR3 strengths · Avg: 9.0/10
Operating MarginProfitability
44.5%10/10

Strong operational efficiency at 44.5%

Profit MarginProfitability
28.3%9/10

Keeps 28 of every $100 in revenue as profit

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

RWT3 strengths · Avg: 10.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Operating MarginProfitability
32.1%10/10

Strong operational efficiency at 32.1%

Revenue GrowthGrowth
93.1%10/10

Revenue surging 93.1% year-over-year

Areas to Watch

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

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Return on EquityProfitability
7.0%3/10

ROE of 7.0% — below average capital efficiency

Debt/EquityHealth
1.003/10

Elevated debt levels

RWT4 concerns · Avg: 2.3/10
Market CapQuality
$718.72M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-6.4%2/10

ROE of -6.4% — below average capital efficiency

EPS GrowthGrowth
-52.6%2/10

Earnings declined 52.6%

Free Cash FlowQuality
$-3.36B2/10

Negative free cash flow — burning cash

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 28.3% and operating margin at 44.5%.

Bull Case : RWT

The strongest argument for RWT centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 93.1% demonstrates continued momentum. 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, EPS Growth. Debt-to-equity of 22.68 is elevated, increasing financial risk.

Key Dynamics to Monitor

EXR profiles as a value stock while RWT is a hypergrowth play — different risk/reward profiles.

RWT carries more volatility with a beta of 1.57 — expect wider price swings.

RWT is growing revenue faster at 93.1% — sustainability is the question.

EXR generates stronger free cash flow (362M), providing more financial flexibility.

Bottom Line

EXR scores higher overall (57/100 vs 57/100), backed by strong 28.3% margins. RWT offers better value entry with a 48.4% 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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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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