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 $15.9B — 1.1× the size. Invitation Home trades at the lower P/E: 24.0× against 49.3×. Invitation Home grew revenue faster over the last twelve months: 7.21% against 4.51%. Invitation Home has the higher net margin (23.5% vs 17.9%) and the higher return on invested capital (3.44% vs 2.99%). Both pay a dividend; Invitation Home yields more (4.38% vs 3.82%). Across the 23 metrics below, Invitation Home leads on 20 and Essex Property Trust, Inc. on 3.

Valuation

Metric ESS INVH Reit Residential median
P/E 49.34 24.04 28.23
P/S 8.94 5.57 5.57
P/B 3.19 1.82 1.88
Price to free cash flow 24.39 7.33 20.32
EV/EBITDA 19.96 13.36 15.93
EV/Sales 12.29 6.93 8.07
Earnings yield 2.03% 4.16% 2.74%
Free cash flow yield 4.10% 13.64% 4.10%

Profitability

Metric ESS INVH Reit Residential median
Gross margin 67.84% 55.67% 58.68%
Operating margin 29.47% 24.32% 20.58%
Net margin 17.85% 23.47% 17.85%
Free cash flow margin 36.65% 75.91% 27.64%
Return on equity 6.17% 7.34% 6.17%
Return on assets 2.67% 3.65% 3.20%
Return on invested capital 2.99% 3.44% 2.03%

Growth

Metric ESS INVH Reit Residential median
Revenue growth (TTM) 4.51% 7.21% 3.11%
EPS growth (last fiscal year) (9.88%) 29.73% 9.26%
Revenue growth, 5-year CAGR 4.76% 8.41% 8.41%
Net income growth, 5-year CAGR 3.32% 24.56% 4.20%

Health

Metric ESS INVH Reit Residential median
Debt to equity 1.21 0.46 0.77
Current ratio 0.54 0.01 0.54
Net debt to EBITDA 4.44 2.67 4.26

Dividend

Metric ESS INVH Reit Residential median
Dividend yield 3.82% 4.38% 4.48%
Payout ratio 1.89 1.05 1.06

Size

Metric ESS INVH Reit Residential median
Market cap 18.05b 15.88b 6.71b

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