AvalonBay Communities Inc (AVB)vsEquity Residential (EQR)
AVB
AvalonBay Communities Inc
$180.84
-1.47%
REAL ESTATE · Cap: $26.05B
EQR
Equity Residential
$63.88
-1.75%
REAL ESTATE · Cap: $25.57B
Smart Verdict
WallStSmart Research — data-driven comparison
Equity Residential generates 2% more annual revenue ($3.11B vs $3.06B). AVB leads profitability with a 37.3% profit margin vs 30.6%. AVB appears more attractively valued with a PEG of 6.49. AVB earns a higher WallStSmart Score of 59/100 (C).
AVB
Buy59
out of 100
Grade: C
EQR
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+21.4%
Fair Value
$228.65
Current Price
$180.84
$47.81 discount
Margin of Safety
+4.7%
Fair Value
$67.84
Current Price
$63.88
$3.96 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 37 of every $100 in revenue as profit
Reasonable price relative to book value
Strong operational efficiency at 29.3%
Earnings expanding 40.3% YoY
Keeps 31 of every $100 in revenue as profit
Reasonable price relative to book value
Strong operational efficiency at 27.4%
Areas to Watch
2.5% revenue growth
Weak financial health signals
Expensive relative to growth rate
Distress zone — elevated risk
Moderate valuation
2.5% revenue growth
Expensive relative to growth rate
Earnings declined 64.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : AVB
The strongest argument for AVB centers on Profit Margin, Price/Book, Operating Margin. Profitability is solid with margins at 37.3% and operating margin at 29.3%.
Bull Case : EQR
The strongest argument for EQR centers on Profit Margin, Price/Book, Operating Margin. Profitability is solid with margins at 30.6% and operating margin at 27.4%.
Bear Case : AVB
The primary concerns for AVB are Revenue Growth, Piotroski F-Score, PEG Ratio.
Bear Case : EQR
The primary concerns for EQR are P/E Ratio, Revenue Growth, PEG Ratio.
Key Dynamics to Monitor
AVB carries more volatility with a beta of 0.80 — expect wider price swings.
EQR is growing revenue faster at 2.5% — sustainability is the question.
AVB generates stronger free cash flow (359M), providing more financial flexibility.
Monitor REIT - RESIDENTIAL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AVB scores higher overall (59/100 vs 49/100), backed by strong 37.3% margins. 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.
AvalonBay Communities Inc
REAL ESTATE · REIT - RESIDENTIAL · USA
AvalonBay Communities, Inc. is a publicly traded real estate investment trust that invests in apartments.
Equity Residential
REAL ESTATE · REIT - RESIDENTIAL · USA
Equity Residential is a publicly traded real estate investment trust that invests in apartments.
Compare with Other REIT - RESIDENTIAL Stocks
Want to dig deeper into these stocks?