Medalist Diversified REIT (NASDAQ:MDRR) and Extra Space Storage (NYSE:EXR) Head to Head Survey

Medalist Diversified REIT (NASDAQ:MDRR) and Extra Space Storage (NYSE:EXR) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares Medalist Diversified REIT and Extra Space Storage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Medalist Diversified REIT	74.73%	-16.90%	-6.11%
Extra Space Storage	27.66%	6.65%	3.28%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Medalist Diversified REIT and Extra Space Storage, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Medalist Diversified REIT	0	1	0	0	2.00
Extra Space Storage	0	10	6	0	2.38

Extra Space Storage has a consensus target price of $146.53, indicating a potential downside of 1.27%. Given Extra Space Storage’s stronger consensus rating and higher probable upside, analysts clearly believe Extra Space Storage is more favorable than Medalist Diversified REIT.

Dividends

Medalist Diversified REIT pays an annual dividend of $0.27 per share and has a dividend yield of 2.3%. Extra Space Storage pays an annual dividend of $6.48 per share and has a dividend yield of 4.4%. Medalist Diversified REIT pays out 7.2% of its earnings in the form of a dividend. Extra Space Storage pays out 145.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Medalist Diversified REIT has increased its dividend for 2 consecutive years and Extra Space Storage has increased its dividend for 1 consecutive years.

Earnings and Valuation

This table compares Medalist Diversified REIT and Extra Space Storage”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Medalist Diversified REIT	$10.40 million	1.86	-$2.39 million	$3.75	3.16
Extra Space Storage	$3.38 billion	9.28	$974.00 million	$4.46	33.28

Extra Space Storage has higher revenue and earnings than Medalist Diversified REIT. Medalist Diversified REIT 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.

Insider & Institutional Ownership

17.4% of Medalist Diversified REIT shares are owned by institutional investors. Comparatively, 99.1% of Extra Space Storage shares are owned by institutional investors. 77.6% of Medalist Diversified REIT shares are owned by insiders. Comparatively, 1.0% of Extra Space Storage shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Medalist Diversified REIT has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Extra Space Storage has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Summary

Extra Space Storage beats Medalist Diversified REIT on 13 of the 17 factors compared between the two stocks.

About Medalist Diversified REIT

Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S. The Company's strategy is to focus on commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions.

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.