Essex Property Trust, Inc. (ESS) vs Sun Communities, Inc. (SUI)

Essex Property Trust, Inc. and Sun Communities, Inc. are both Reit Residential companies. Essex Property Trust, Inc. is the larger, with a market value of $18.1B against $14.6B — 1.2× the size. Sun Communities, Inc. has negative trailing earnings, so its P/E is not meaningful; Essex Property Trust, Inc. trades at 49.3×. Sun Communities, Inc. grew revenue faster over the last twelve months: 11.3% against 4.51%. Essex Property Trust, Inc. has the higher net margin (17.9% vs 10.1%) and the lower return on invested capital (2.99% vs 3.82%). Both pay a dividend; Essex Property Trust, Inc. yields more (3.82% vs 3.62%). Across the 22 metrics below, Essex Property Trust, Inc. leads on 11 and Sun Communities, Inc. on 11.

Valuation

Metric ESS SUI Reit Residential median
P/E 49.34 n/m 28.23
P/S 8.94 6.11 5.57
P/B 3.19 2.68 1.88
Price to free cash flow 24.39 26.76 20.32
EV/EBITDA 19.96 34.04 15.93
EV/Sales 12.29 7.39 8.07
Earnings yield 2.03% (5.00%) 2.74%
Free cash flow yield 4.10% 3.74% 4.10%

Profitability

Metric ESS SUI Reit Residential median
Gross margin 67.84% 58.51% 58.68%
Operating margin 29.47% 21.71% 20.58%
Net margin 17.85% 10.07% 17.85%
Free cash flow margin 36.65% 22.83% 27.64%
Return on equity 6.17% 3.78% 6.17%
Return on assets 2.67% 2.14% 3.20%
Return on invested capital 2.99% 3.82% 2.03%

Growth

Metric ESS SUI Reit Residential median
Revenue growth (TTM) 4.51% 11.34% 3.11%
EPS growth (last fiscal year) (9.88%) 1,426.76% 9.26%
Revenue growth, 5-year CAGR 4.76% 10.52% 8.41%
Net income growth, 5-year CAGR 3.32% 59.56% 4.20%

Health

Metric ESS SUI Reit Residential median
Debt to equity 1.21 0.69 0.77
Current ratio 0.54 4.68 0.54
Net debt to EBITDA 4.44 3.65 4.26

Dividend

Metric ESS SUI Reit Residential median
Dividend yield 3.82% 3.62% 4.48%
Payout ratio 1.89 — 1.06

Size

Metric ESS SUI Reit Residential median
Market cap 18.05b 14.57b 6.71b

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