WallStSmart

AvalonBay Communities Inc (AVB)vsInvitation Homes Inc (INVH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AvalonBay Communities Inc generates 12% more annual revenue ($3.04B vs $2.72B). AVB leads profitability with a 34.6% profit margin vs 21.6%. AVB appears more attractively valued with a PEG of 6.49. INVH earns a higher WallStSmart Score of 56/100 (C).

AVB

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 7.5Value: 4.7Quality: 3.8
Piotroski: 3/9Altman Z: 1.15

INVH

Buy

56

out of 100

Grade: C

Growth: 4.7Profit: 6.5Value: 4.7Quality: 4.8
Piotroski: 4/9Altman Z: 0.81
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AVBSignificantly Overvalued (-265.8%)

Margin of Safety

-265.8%

Fair Value

$49.16

Current Price

$161.37

$112.21 premium

UndervaluedFair: $49.16Overvalued
INVHSignificantly Overvalued (-166.4%)

Margin of Safety

-166.4%

Fair Value

$10.21

Current Price

$24.39

$14.18 premium

UndervaluedFair: $10.21Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AVB3 strengths · Avg: 9.3/10
Profit MarginProfitability
34.6%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
30.6%10/10

Strong operational efficiency at 30.6%

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

INVH3 strengths · Avg: 8.3/10
Profit MarginProfitability
21.6%9/10

Keeps 22 of every $100 in revenue as profit

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
27.0%8/10

Strong operational efficiency at 27.0%

Areas to Watch

AVB4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
3.7%4/10

3.7% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
6.492/10

Expensive relative to growth rate

EPS GrowthGrowth
-40.9%2/10

Earnings declined 40.9%

INVH4 concerns · Avg: 3.8/10
P/E RatioValuation
25.4x4/10

Moderate valuation

Revenue GrowthGrowth
4.3%4/10

4.3% revenue growth

EPS GrowthGrowth
2.4%4/10

2.4% earnings growth

Return on EquityProfitability
6.1%3/10

ROE of 6.1% — below average capital efficiency

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 34.6% and operating margin at 30.6%.

Bull Case : INVH

The strongest argument for INVH centers on Profit Margin, Price/Book, Operating Margin. Profitability is solid with margins at 21.6% and operating margin at 27.0%.

Bear Case : AVB

The primary concerns for AVB are Revenue Growth, Piotroski F-Score, PEG Ratio.

Bear Case : INVH

The primary concerns for INVH are P/E Ratio, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

INVH carries more volatility with a beta of 0.81 — expect wider price swings.

INVH is growing revenue faster at 4.3% — sustainability is the question.

AVB generates stronger free cash flow (241M), providing more financial flexibility.

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

Bottom Line

AVB scores higher overall (56/100 vs 56/100), backed by strong 34.6% margins. Both earn "Buy" and "Buy" 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.

Invitation Homes Inc

REAL ESTATE · REIT - RESIDENTIAL · USA

Invitation Homes is the nation's leading single-family home leasing company, meeting changing lifestyle demands by providing access to high-quality, renovated homes with valuable features like proximity to jobs and access to good schools.

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