Essex Property Trust (ESS) & Its Rivals Head to Head Review

Essex Property Trust (NYSE: ESS) is one of 44 public companies in the “Residential REITs” industry, but how does it weigh in compared to its rivals? We will compare Essex Property Trust to similar businesses based on the strength of its earnings, risk, dividends, institutional ownership, valuation, analyst recommendations and profitability.

Earnings and Valuation

This table compares Essex Property Trust and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Essex Property Trust $1.37 billion $932.45 million 33.03
Essex Property Trust Competitors $702.65 million $394.70 million 0.68

Essex Property Trust has higher revenue and earnings than its rivals. Essex Property Trust is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings and price targets for Essex Property Trust and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Essex Property Trust 2 9 7 0 2.28
Essex Property Trust Competitors 170 1110 1159 30 2.42

Essex Property Trust currently has a consensus price target of $266.57, suggesting a potential upside of 3.72%. As a group, “Residential REITs” companies have a potential upside of 8.53%. Given Essex Property Trust’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Essex Property Trust has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

99.5% of Essex Property Trust shares are held by institutional investors. Comparatively, 77.0% of shares of all “Residential REITs” companies are held by institutional investors. 3.3% of Essex Property Trust shares are held by insiders. Comparatively, 7.1% of shares of all “Residential REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Essex Property Trust and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Essex Property Trust 38.33% 8.03% 4.11%
Essex Property Trust Competitors 18.59% 5.04% 1.96%

Dividends

Essex Property Trust pays an annual dividend of $7.00 per share and has a dividend yield of 2.7%. Essex Property Trust pays out 90.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Residential REITs” companies pay a dividend yield of 3.4% and pay out 119.1% of their earnings in the form of a dividend. Essex Property Trust has increased its dividend for 23 consecutive years.

Risk and Volatility

Essex Property Trust has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Essex Property Trust’s rivals have a beta of 0.57, indicating that their average share price is 43% less volatile than the S&P 500.

Summary

Essex Property Trust beats its rivals on 8 of the 15 factors compared.

About Essex Property Trust

Essex Property Trust, Inc. is a self-administered and self-managed real estate investment trust. The Company is engaged primarily in the ownership, operation, management, acquisition, development and redevelopment of predominantly apartment communities, located along the West Coast. Its segments include Southern California, Northern California, Seattle Metro and Other real estate assets. The Company owns all of its interest in its real estate and other investments directly or indirectly through Essex Portfolio, L.P. (the Operating Partnership). Its properties include Mio, Form 15, Emerson Valley Village and Ashton Sherman Village. As of December 31, 2016, it owned or held an interest in 245 communities, aggregating 59,645 apartment homes, excluding its ownership in preferred equity investments, as well as two operating commercial buildings (totaling approximately 140,564 square feet), and six active development projects with 2,223 apartment homes in various stages of development.

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