WallStSmart

Alexandria Real Estate Equities Inc (ARE)vsHighwoods Properties Inc (HIW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alexandria Real Estate Equities Inc generates 256% more annual revenue ($2.93B vs $823.80M). HIW leads profitability with a 11.4% profit margin vs -36.1%. ARE appears more attractively valued with a PEG of 3.24. ARE earns a higher WallStSmart Score of 51/100 (C-).

ARE

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 4.0Value: 5.7Quality: 4.8
Piotroski: 5/9

HIW

Hold

49

out of 100

Grade: D+

Growth: 3.3Profit: 6.0Value: 5.3Quality: 4.5
Piotroski: 4/9Altman Z: 0.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AREUndervalued (+53.1%)

Margin of Safety

+53.1%

Fair Value

$114.57

Current Price

$51.28

$63.29 discount

UndervaluedFair: $114.57Overvalued
HIWUndervalued (+48.3%)

Margin of Safety

+48.3%

Fair Value

$45.16

Current Price

$27.88

$17.28 discount

UndervaluedFair: $45.16Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARE2 strengths · Avg: 10.0/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

EPS GrowthGrowth
648.0%10/10

Earnings expanding 648.0% YoY

HIW2 strengths · Avg: 9.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Operating MarginProfitability
25.3%8/10

Strong operational efficiency at 25.3%

Areas to Watch

ARE4 concerns · Avg: 1.8/10
PEG RatioValuation
3.242/10

Expensive relative to growth rate

Return on EquityProfitability
-6.5%2/10

ROE of -6.5% — below average capital efficiency

Revenue GrowthGrowth
-11.5%2/10

Revenue declined 11.5%

Profit MarginProfitability
-36.1%1/10

Currently unprofitable

HIW4 concerns · Avg: 3.0/10
P/E RatioValuation
36.0x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
3.8%3/10

ROE of 3.8% — below average capital efficiency

Debt/EquityHealth
1.563/10

Elevated debt levels

PEG RatioValuation
7.772/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : ARE

The strongest argument for ARE centers on Price/Book, EPS Growth.

Bull Case : HIW

The strongest argument for HIW centers on Price/Book, Operating Margin.

Bear Case : ARE

The primary concerns for ARE are PEG Ratio, Return on Equity, Revenue Growth.

Bear Case : HIW

The primary concerns for HIW are P/E Ratio, Return on Equity, Debt/Equity. Debt-to-equity of 1.56 is elevated, increasing financial risk.

Key Dynamics to Monitor

ARE profiles as a turnaround stock while HIW is a value play — different risk/reward profiles.

ARE carries more volatility with a beta of 1.20 — expect wider price swings.

HIW is growing revenue faster at 7.6% — sustainability is the question.

ARE generates stronger free cash flow (197M), providing more financial flexibility.

Bottom Line

ARE scores higher overall (51/100 vs 49/100). HIW offers better value entry with a 48.3% 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.

Alexandria Real Estate Equities Inc

REAL ESTATE · REIT - OFFICE · USA

Alexandria Real Estate Equities, Inc. is an American real estate investment trust that invests in office buildings and laboratories leased to tenants in the life science and technology industries.

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Highwoods Properties Inc

REAL ESTATE · REIT - OFFICE · USA

Highwoods Properties, Inc., based in Raleigh, is a publicly traded (NYSE: HIW) real estate investment trust (?

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