InfraREIT (HIFR) vs. Extra Space Storage (EXR) Critical Review
Extra Space Storage (NYSE:EXR) and InfraREIT (NYSE:HIFR) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.
This table compares Extra Space Storage and InfraREIT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Extra Space Storage||44.23%||18.93%||6.83%|
This is a breakdown of current ratings for Extra Space Storage and InfraREIT, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Extra Space Storage||0||8||3||0||2.27|
Extra Space Storage presently has a consensus price target of $93.90, suggesting a potential upside of 10.65%. InfraREIT has a consensus price target of $18.00, suggesting a potential downside of 11.42%. Given Extra Space Storage’s stronger consensus rating and higher possible upside, equities analysts plainly believe Extra Space Storage is more favorable than InfraREIT.
Risk & Volatility
Extra Space Storage has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500. Comparatively, InfraREIT has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500.
Valuation & Earnings
This table compares Extra Space Storage and InfraREIT’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Extra Space Storage||$1.11 billion||9.71||$479.01 million||$4.38||19.37|
|InfraREIT||$134.56 million||6.64||$12.30 million||N/A||N/A|
Extra Space Storage has higher revenue and earnings than InfraREIT.
Extra Space Storage pays an annual dividend of $3.44 per share and has a dividend yield of 4.1%. InfraREIT pays an annual dividend of $1.00 per share and has a dividend yield of 4.9%. Extra Space Storage pays out 78.5% 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 7 consecutive years and InfraREIT has increased its dividend for 2 consecutive years.
Insider & Institutional Ownership
84.7% of InfraREIT shares are owned by institutional investors. 3.5% of Extra Space Storage shares are owned by company insiders. Comparatively, 26.7% of InfraREIT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Extra Space Storage beats InfraREIT on 10 of the 15 factors compared between the two stocks.
Extra Space Storage Company Profile
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 June 30, 2018, the Company owned and/or operated 1,568 self-storage stores in 39 states, Washington, D.C. and Puerto Rico. The Company's stores comprise approximately 1,090,000 units and approximately 119 million square feet of rentable space. 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. The Company is the second largest owner and/or operator of self-storage stores in the United States and is the largest self-storage management company in the United States.
InfraREIT Company Profile
InfraREIT is engaged in owning and leasing rate-regulated electric transmission assets in the state of Texas and is structured as a real estate investment trust. The Company is externally managed by Hunt Utility Services, LLC, an affiliate of Hunt Consolidated, Inc. (a diversified holding company based in Dallas, Texas, and managed by the Ray L. Hunt family). The Company's shares are traded on the New York Stock Exchange under the symbol "HIFR."
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