WallStSmart

Extra Space Storage Inc (EXR)vsSunstone Hotel Investors Inc (SHO)

VS

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

Buy

57

out of 100

Grade: C

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

SHO

Hold

44

out of 100

Grade: D

Growth: 4.0Profit: 4.5Value: 4.7Quality: 6.0
Piotroski: 3/9Altman Z: 1.45
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
SHOUndervalued (+51.3%)

Margin of Safety

+51.3%

Fair Value

$19.04

Current Price

$9.83

$9.21 discount

UndervaluedFair: $19.04Overvalued

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

SHO1 strengths · Avg: 10.0/10
Price/BookValuation
1.1x10/10

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
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

SHO4 concerns · Avg: 3.0/10
Market CapQuality
$1.86B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
1.2%3/10

ROE of 1.2% — below average capital efficiency

Profit MarginProfitability
2.6%3/10

2.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : 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.

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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.

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