WallStSmart

AvalonBay Communities Inc (AVB)vsEquity Residential (EQR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Equity Residential generates 1% more annual revenue ($3.13B vs $3.08B). AVB leads profitability with a 33.3% profit margin vs 28.0%. AVB appears more attractively valued with a PEG of 6.97. AVB earns a higher WallStSmart Score of 51/100 (C-).

AVB

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 7.5Value: 4.7Quality: 4.0
Piotroski: 3/9Altman Z: 1.01

EQR

Hold

49

out of 100

Grade: D+

Growth: 3.3Profit: 7.5Value: 4.0Quality: 4.5
Piotroski: 4/9Altman Z: 1.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AVBUndervalued (+10.5%)

Margin of Safety

+10.5%

Fair Value

$200.97

Current Price

$184.06

$16.91 discount

UndervaluedFair: $200.97Overvalued
EQROvervalued (-8.6%)

Margin of Safety

-8.6%

Fair Value

$59.56

Current Price

$63.66

$4.10 premium

UndervaluedFair: $59.56Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AVB3 strengths · Avg: 9.3/10
Profit MarginProfitability
33.3%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
30.6%10/10

Strong operational efficiency at 30.6%

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

EQR3 strengths · Avg: 8.3/10
Profit MarginProfitability
28.0%9/10

Keeps 28 of every $100 in revenue as profit

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Operating MarginProfitability
27.9%8/10

Strong operational efficiency at 27.9%

Areas to Watch

AVB4 concerns · Avg: 3.3/10
P/E RatioValuation
25.3x4/10

Moderate valuation

Revenue GrowthGrowth
2.3%4/10

2.3% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
6.972/10

Expensive relative to growth rate

EQR4 concerns · Avg: 3.0/10
P/E RatioValuation
28.7x4/10

Moderate valuation

Revenue GrowthGrowth
2.1%4/10

2.1% revenue growth

PEG RatioValuation
8.152/10

Expensive relative to growth rate

EPS GrowthGrowth
-39.9%2/10

Earnings declined 39.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : AVB

The strongest argument for AVB centers on Profit Margin, Operating Margin, Price/Book. Profitability is solid with margins at 33.3% and operating margin at 30.6%.

Bull Case : EQR

The strongest argument for EQR centers on Profit Margin, Price/Book, Operating Margin. Profitability is solid with margins at 28.0% and operating margin at 27.9%.

Bear Case : AVB

The primary concerns for AVB are P/E Ratio, Revenue Growth, Piotroski F-Score.

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 0.77 — expect wider price swings.

AVB is growing revenue faster at 2.3% — sustainability is the question.

AVB generates stronger free cash flow (304M), providing more financial flexibility.

Monitor REIT - RESIDENTIAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AVB scores higher overall (51/100 vs 49/100), backed by strong 33.3% 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.

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