AvalonBay Communities (NYSE: AVB) is one of 44 public companies in the “Residential REITs” industry, but how does it weigh in compared to its peers? We will compare AvalonBay Communities to related companies based on the strength of its institutional ownership, risk, earnings, valuation, profitability, dividends and analyst recommendations.

Profitability

This table compares AvalonBay Communities and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AvalonBay Communities 47.90% 9.88% 5.64%
AvalonBay Communities Competitors 18.54% 5.04% 1.96%

Dividends

AvalonBay Communities pays an annual dividend of $5.68 per share and has a dividend yield of 3.1%. AvalonBay Communities pays out 78.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Residential REITs” companies pay a dividend yield of 3.3% and pay out 119.1% of their earnings in the form of a dividend. AvalonBay Communities has increased its dividend for 5 consecutive years.

Insider and Institutional Ownership

97.5% of AvalonBay Communities shares are owned by institutional investors. Comparatively, 77.0% of shares of all “Residential REITs” companies are owned by institutional investors. 0.5% of AvalonBay Communities shares are owned by company insiders. Comparatively, 7.1% of shares of all “Residential REITs” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for AvalonBay Communities and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AvalonBay Communities 1 8 8 0 2.41
AvalonBay Communities Competitors 171 1116 1162 30 2.42

AvalonBay Communities presently has a consensus target price of $197.50, indicating a potential upside of 9.36%. As a group, “Residential REITs” companies have a potential upside of 6.55%. Given AvalonBay Communities’ higher probable upside, equities analysts plainly believe AvalonBay Communities is more favorable than its peers.

Risk and Volatility

AvalonBay Communities has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, AvalonBay Communities’ peers have a beta of 0.57, meaning that their average stock price is 43% less volatile than the S&P 500.

Earnings & Valuation

This table compares AvalonBay Communities and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
AvalonBay Communities $2.05 billion $1.30 billion 24.84
AvalonBay Communities Competitors $635.77 million $353.96 million 0.78

AvalonBay Communities has higher revenue and earnings than its peers. AvalonBay Communities is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

AvalonBay Communities beats its peers on 10 of the 15 factors compared.

AvalonBay Communities Company Profile

AvalonBay Communities, Inc. is a real estate investment trust (REIT). The Company is focused on the development, redevelopment, acquisition, ownership and operation of multifamily communities primarily in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California. Its segments include Established Communities, Other Stabilized Communities and Development/Redevelopment Communities. As of June 30, 2017, the Company owned or held a direct or indirect ownership interest in 287 apartment communities containing 83,123 apartment homes in 10 states and the District of Columbia, of which 23 communities were under development and nine communities were under redevelopment. It operates its apartment communities under three core brands: Avalon, AVA and Eaves by Avalon. Its real estate investments consist of operating apartment communities, communities in various stages of development (Development Communities) and Development Rights.

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