Essex Property Trust, Inc. (ESS) vs Invitation Home (INVH)

Essex Property Trust, Inc. and Invitation Home are both Reit Residential companies. Essex Property Trust, Inc. is the larger, with a market value of $18.1B against $15.7B — 1.2× the size. Invitation Home trades at the lower P/E: 24.4× against 42.2×. Invitation Home grew revenue faster over the last twelve months: 6.72% against 4.74%. Invitation Home has the higher net margin (23.1% vs 21.5%) and the higher return on invested capital (3.41% vs 3.23%). Both pay a dividend; Essex Property Trust, Inc. yields more (4.15% vs 3.19%). Across the 23 metrics below, Invitation Home leads on 18 and Essex Property Trust, Inc. on 5.

Valuation

Metric ESS INVH Reit Residential median
P/E 42.24 24.42 28.48
P/S 9.06 5.52 5.52
P/B 3.18 1.73 1.89
Price to free cash flow 23.96 9.78 18.04
EV/EBITDA 19.26 13.15 15.74
EV/Sales 12.50 7.01 8.08
Earnings yield 2.37% 4.09% 2.37%
Free cash flow yield 4.17% 10.23% 4.03%

Profitability

Metric ESS INVH Reit Residential median
Gross margin 67.90% 56.37% 58.73%
Operating margin 32.55% 25.48% 20.57%
Net margin 21.48% 23.07% 20.81%
Free cash flow margin 37.81% 56.48% 20.24%
Return on equity 7.33% 7.01% 6.86%
Return on assets 3.17% 3.55% 3.17%
Return on invested capital 3.23% 3.41% 2.03%

Growth

Metric ESS INVH Reit Residential median
Revenue growth (TTM) 4.74% 6.72% 2.66%
EPS growth (last fiscal year) (9.88%) 29.73% —
Revenue growth, 5-year CAGR 4.76% 8.41% 7.53%
Net income growth, 5-year CAGR 3.32% 24.56% 3.76%

Health

Metric ESS INVH Reit Residential median
Debt to equity 1.22 0.47 0.78
Current ratio 0.60 0.02 0.54
Net debt to EBITDA 4.44 2.67 4.27

Dividend

Metric ESS INVH Reit Residential median
Dividend yield 4.15% 3.19% 4.63%
Payout ratio 1.10 1.33 1.35

Size

Metric ESS INVH Reit Residential median
Market cap 18.05b 15.65b 4.17b

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