WallStSmart

AvalonBay Communities Inc (AVB)vsNexpoint Residential Trust Inc (NXRT)

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Smart Verdict

WallStSmart Research — data-driven comparison

AvalonBay Communities Inc generates 1116% more annual revenue ($3.08B vs $253.38M). AVB leads profitability with a 33.3% profit margin vs -13.2%. 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

NXRT

Hold

42

out of 100

Grade: D

Growth: 5.3Profit: 3.5Value: 4.0Quality: 2.5
Piotroski: 3/9Altman Z: 0.17
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AVBUndervalued (+10.5%)

Margin of Safety

+10.5%

Fair Value

$200.89

Current Price

$183.91

$16.98 discount

UndervaluedFair: $200.89Overvalued

Intrinsic value data unavailable for NXRT.

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
30.2%10/10

Strong operational efficiency at 30.2%

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

NXRT2 strengths · Avg: 9.0/10
EPS GrowthGrowth
371.8%10/10

Earnings expanding 371.8% YoY

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Areas to Watch

AVB4 concerns · Avg: 3.3/10
P/E RatioValuation
25.5x4/10

Moderate valuation

Revenue GrowthGrowth
2.1%4/10

2.1% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
6.972/10

Expensive relative to growth rate

NXRT4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.4%4/10

2.4% revenue growth

Market CapQuality
$1.29B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
26.922/10

Expensive relative to growth rate

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 30.2%.

Bull Case : NXRT

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

Bear Case : AVB

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

Bear Case : NXRT

The primary concerns for NXRT are Revenue Growth, Market Cap, Piotroski F-Score. Debt-to-equity of 6.41 is elevated, increasing financial risk.

Key Dynamics to Monitor

AVB profiles as a value stock while NXRT is a turnaround play — different risk/reward profiles.

NXRT carries more volatility with a beta of 1.19 — expect wider price swings.

NXRT is growing revenue faster at 2.4% — sustainability is the question.

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

Bottom Line

AVB scores higher overall (51/100 vs 42/100), 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.

Nexpoint Residential Trust Inc

REAL ESTATE · REIT - RESIDENTIAL · USA

NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol NXRT, primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with value-added potential in large cities and suburbs. Submarkets in large cities, mainly in the southeastern and southwestern United States.

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