Essex Property Trust, Inc. (ESS) vs Mid-America Apartment Communities, Inc. (MAA)

Essex Property Trust, Inc. and Mid-America Apartment Communities, Inc. are both Reit Residential companies. Essex Property Trust, Inc. is the larger, with a market value of $18.1B against $14.0B — 1.3× the size. Mid-America Apartment Communities, Inc. trades at the lower P/E: 34.6× against 42.2×. Essex Property Trust, Inc. grew revenue faster over the last twelve months: 4.74% against 0.85%. Essex Property Trust, Inc. has the higher net margin (21.5% vs 18.0%) and the lower return on invested capital (3.23% vs 3.33%). Both pay a dividend; Mid-America Apartment Communities, Inc. yields more (4.67% vs 4.15%). Across the 23 metrics below, Mid-America Apartment Communities, Inc. leads on 13 and Essex Property Trust, Inc. on 10.

Valuation

Metric ESS MAA Reit Residential median
P/E 42.24 34.61 28.48
P/S 9.06 6.19 5.52
P/B 3.18 2.46 1.89
Price to free cash flow 23.96 24.80 18.04
EV/EBITDA 19.26 15.56 15.74
EV/Sales 12.50 8.73 8.08
Earnings yield 2.37% 2.89% 2.37%
Free cash flow yield 4.17% 4.03% 4.03%

Profitability

Metric ESS MAA Reit Residential median
Gross margin 67.90% 58.39% 58.73%
Operating margin 32.55% 26.88% 20.57%
Net margin 21.48% 18.01% 20.81%
Free cash flow margin 37.81% 24.97% 20.24%
Return on equity 7.33% 6.86% 6.86%
Return on assets 3.17% 3.35% 3.17%
Return on invested capital 3.23% 3.33% 2.03%

Growth

Metric ESS MAA Reit Residential median
Revenue growth (TTM) 4.74% 0.85% 2.66%
EPS growth (last fiscal year) (9.88%) (15.81%) —
Revenue growth, 5-year CAGR 4.76% 5.65% 7.53%
Net income growth, 5-year CAGR 3.32% 12.02% 3.76%

Health

Metric ESS MAA Reit Residential median
Debt to equity 1.22 1.02 0.78
Current ratio 0.60 0.09 0.54
Net debt to EBITDA 4.44 4.27 4.27

Dividend

Metric ESS MAA Reit Residential median
Dividend yield 4.15% 4.67% 4.63%
Payout ratio 1.10 1.04 1.35

Size

Metric ESS MAA Reit Residential median
Market cap 18.05b 13.95b 4.17b

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