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ESS vs INVH

ESS
Essex Property Trust, Inc.
BEARISH
Price
$255.37
Market Cap
$16.47B
Sector
Real Estate
AI Confidence
85%
INVH
Invitation Homes Inc.
NEUTRAL
Price
$28.14
Market Cap
$16.87B
Sector
Real Estate
AI Confidence
85%

Valuation

P/E Ratio
ESS
24.58
INVH
29.31
Forward P/E
ESS
41.72
INVH
40.14
P/B Ratio
ESS
2.97
INVH
1.8
P/S Ratio
ESS
8.51
INVH
6.21
EV/EBITDA
ESS
18.67
INVH
17.09

Profitability

Gross Margin
ESS
68.58%
INVH
58.25%
Operating Margin
ESS
32.86%
INVH
27.0%
Profit Margin
ESS
34.6%
INVH
21.63%
ROE
ESS
12.23%
INVH
6.09%
ROA
ESS
3.1%
INVH
2.49%

Growth

Revenue Growth
ESS
3.2%
INVH
4.3%
Earnings Growth
ESS
-68.7%
INVH
2.4%

Financial Health

Debt/Equity
ESS
1.19
INVH
0.88
Current Ratio
ESS
0.15
INVH
2.42
Quick Ratio
ESS
0.06
INVH
0.85

Dividends

Dividend Yield
ESS
4.03%
INVH
4.26%
Payout Ratio
ESS
98.85%
INVH
121.88%

AI Verdict

ESS BEARISH

ESS exhibits significant valuation misalignment, trading at $255.37 despite a Graham Number of $141.78 and an Intrinsic Value of $72.73. The Piotroski F-Score of 4/9 indicates only stable health, while a crashing YoY earnings growth of -68.70% and a PEG ratio of 7.02 suggest the stock is severely overpriced relative to its growth profile. Furthermore, a dividend payout ratio of 98.85% leaves virtually no margin for error, making the current yield precarious. The combination of a 0/100 technical trend and deteriorating earnings fundamentals supports a bearish outlook.

Strengths
Strong profit margins (34.60%) and gross margins (68.58%)
Substantial market capitalization of $16.47B providing scale
Consistent dividend yield of 4.03%
Risks
Severe valuation premium over Graham and Intrinsic value estimates
Dramatic decline in YoY earnings growth (-68.70%)
Unsustainable dividend payout ratio (98.85%)
INVH NEUTRAL

INVH exhibits strong operational health with a Piotroski F-Score of 7/9, indicating a robust financial foundation. However, the stock is significantly overvalued, trading at $28.14 against a Graham Number of $18.36 and an Intrinsic Value of $10.18. A critical concern is the dividend payout ratio of 121.88%, which is unsustainable in the long term. While analyst sentiment remains bullish, the combination of sluggish growth (2.4% earnings growth) and a bearish technical trend (0/100) suggests limited immediate upside.

Strengths
Strong Piotroski F-Score (7/9) indicating high financial health
Healthy liquidity with a Current Ratio of 2.42
Manageable Debt/Equity ratio (0.88) relative to REIT sector averages
Risks
Unsustainable dividend payout ratio of 121.88%
Severe overvaluation indicated by a PEG ratio of 13.14
Stagnant growth metrics (Revenue growth 4.3%, Earnings growth 2.4%)

Compare Another Pair

ESS vs INVH: Head-to-Head Comparison

This page compares Essex Property Trust, Inc. (ESS) and Invitation Homes Inc. (INVH) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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