WallStSmart

Essex Property Trust Inc (ESS)vsSun Communities Inc (SUI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sun Communities Inc generates 18% more annual revenue ($2.33B vs $1.98B). ESS leads profitability with a 20.9% profit margin vs -37.4%. ESS appears more attractively valued with a PEG of 7.39. ESS earns a higher WallStSmart Score of 49/100 (D+).

ESS

Hold

49

out of 100

Grade: D+

Growth: 4.0Profit: 6.5Value: 5.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.74

SUI

Hold

40

out of 100

Grade: F

Growth: 2.7Profit: 4.0Value: 4.7Quality: 6.0
Piotroski: 5/9Altman Z: 0.56
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ESSUndervalued (+35.1%)

Margin of Safety

+35.1%

Fair Value

$403.08

Current Price

$283.06

$120.02 discount

UndervaluedFair: $403.08Overvalued
SUIUndervalued (+39.3%)

Margin of Safety

+39.3%

Fair Value

$210.55

Current Price

$121.36

$89.19 discount

UndervaluedFair: $210.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ESS2 strengths · Avg: 9.5/10
Operating MarginProfitability
34.0%10/10

Strong operational efficiency at 34.0%

Profit MarginProfitability
20.9%9/10

Keeps 21 of every $100 in revenue as profit

SUI2 strengths · Avg: 8.0/10
Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.2%8/10

Strong operational efficiency at 23.2%

Areas to Watch

ESS4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
3.1%4/10

3.1% revenue growth

Return on EquityProfitability
7.8%3/10

ROE of 7.8% — below average capital efficiency

Debt/EquityHealth
1.273/10

Elevated debt levels

PEG RatioValuation
7.392/10

Expensive relative to growth rate

SUI4 concerns · Avg: 2.5/10
Revenue GrowthGrowth
0.2%4/10

0.2% revenue growth

PEG RatioValuation
8.162/10

Expensive relative to growth rate

P/E RatioValuation
158.1x2/10

Premium valuation, high expectations priced in

Return on EquityProfitability
-15.6%2/10

ROE of -15.6% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : ESS

The strongest argument for ESS centers on Operating Margin, Profit Margin. Profitability is solid with margins at 20.9% and operating margin at 34.0%.

Bull Case : SUI

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

Bear Case : ESS

The primary concerns for ESS are Revenue Growth, Return on Equity, Debt/Equity. A P/E of 44.9x leaves little room for execution misses.

Bear Case : SUI

The primary concerns for SUI are Revenue Growth, PEG Ratio, P/E Ratio. A P/E of 158.1x leaves little room for execution misses.

Key Dynamics to Monitor

ESS profiles as a value stock while SUI is a turnaround play — different risk/reward profiles.

SUI carries more volatility with a beta of 0.77 — expect wider price swings.

ESS is growing revenue faster at 3.1% — sustainability is the question.

ESS generates stronger free cash flow (234M), providing more financial flexibility.

Bottom Line

ESS scores higher overall (49/100 vs 40/100), backed by strong 20.9% margins. SUI offers better value entry with a 39.3% margin of safety. Both earn "Hold" 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.

Essex Property Trust Inc

REAL ESTATE · REIT - RESIDENTIAL · USA

Essex Property Trust is a publicly traded real estate investment trust that invests in apartments, primarily on the West Coast of the United States.

Sun Communities Inc

REAL ESTATE · REIT - RESIDENTIAL · USA

Sun Communities Inc. (SUI) is a prominent real estate investment trust (REIT) specializing in acquiring, developing, and managing a diverse array of manufactured housing and recreational vehicle (RV) communities throughout the U.S. and Canada. With a robust portfolio of over 600 properties, the company emphasizes long-term value creation by generating consistent rental income and enhancing tenant experiences. Sun Communities is dedicated to sustainability and responsible land use, positioning itself as a strong contender in the burgeoning affordable housing market, appealing to institutional investors looking for stability and growth in their portfolios.

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