LIVE
AVB
AvalonBay Communities, Inc. · Real Estate
$177.32
-4.21% this month
VERSUS
⟷
COMPARE
EQR
Equity Residential · Real Estate
$64.09
-2.51% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
AVB
2
EQR
3
Comparison scoreboard
EQR LEADS 3/5AI Score
AVB 39.0
EQR ✓39.2
1Y Return
AVB -14.05%
EQR ✓-6.75%
Fwd P/E
AVB ✓38.39
EQR 42.89
Target Up.
AVB +5.18%
EQR ✓+6.26%
Op. Margin
AVB ✓29.32%
EQR 27.40%
Metrics last refreshed: 6/20/2026
Quick take
AVB vs EQR Stock Comparison: AI Score, Valuation, Performance and Upside
AvalonBay and Equity Residential are the two largest coastal apartment REITs with similar geographic exposure to high-barrier coastal US markets. AVB is more development-oriented, creating value through constructing new communities. EQR is more acquisition-focused, managing a portfolio of premium coastal apartments for affluent renters. Both face the same coastal market dynamics — limited supply but some post-COVID urban demand normalization.
AVB vs EQR is coastal apartment development expertise (AvalonBay) versus coastal apartment acquisition and management expertise (Equity Residential) — both serve similar markets with different operational approaches, and both pay substantial dividends from coastal market NOI.
Live analysis · updated 6/20/2026
EQR holds the edge across 3 of 5 key metrics in this comparison. EQR has delivered stronger 1-year price return (-6.75% vs -14.05%), though AVB trades at the lower forward P/E (38.39x vs 42.89x). On fundamentals, EQR is growing revenue faster (2.50%), while AVB maintains the higher operating margin (29.32%) — a classic growth-versus-profitability split. Analyst consensus implies similar upside for both: +5.18% for AVB and +6.26% for EQR.
Normalized 1Y performance
AVB
EQR
Recent returns
AVB
EQR
Analyst price targets & sentiment
AVB
Price target range
analyst mean$196.72
current price$177.32
+5.2% upside to analyst mean
EQR
Price target range
analyst mean$71.56
current price$64.09
+6.3% upside to analyst mean
Who should consider this stock?
AVB may suit investors who:
- →prefer an apartment REIT with active development pipeline generating above-market yields on new communities
- →value AvalonBay's geographic diversification expanding into Southeast and Mountain West markets beyond legacy coastal concentration
- →want a premium apartment REIT with both income from stabilized portfolio and NAV growth from development completions
- →are comfortable with development execution risk (cost overruns, permitting delays) inherent in an active construction pipeline
EQR may suit investors who:
- →prefer a conservative apartment REIT focused on managing high-quality stabilized communities for affluent renters-by-choice
- →value EQR's low development risk profile with acquisition-focused strategy reducing execution complexity vs developer REITs
- →want coastal apartment REIT income from NYC, Boston, SF, and Seattle markets without development stage capital risk
- →are comfortable with acquisition-dependent growth strategy requiring favorable asset pricing for accretive transactions
Performance & AI score
| Metric | AVB | EQR |
|---|---|---|
| AI score | 39.0 | 39.2 |
| AI rank | #1204 | #1178 |
| Latest close | $177.32 | $64.09 |
| 1M return | -4.21% | -2.51% |
| 6M return | -2.17% | +3.40% |
| 1Y return | -14.05% | -6.75% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | AVB | EQR |
|---|---|---|
| 1Y ago | $8.59K (-14.1%) started 2025-06-18 | $9.31K (-6.9%) started 2025-06-18 |
| 5Y ago | $10.98K (+9.8%) started 2021-06-21 | $11.02K (+10.2%) started 2021-06-21 |
| 10Y ago | $19.47K (+94.7%) started 2016-06-20 | $21.6K (+116.0%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | AVB | EQR |
|---|---|---|
| Market cap | $26.53B | $26.02B |
| Trailing P/E | 23.20 | 26.94 |
| Forward P/E | 38.39 | 42.89 |
| Price/Sales | N/A | N/A |
| EV/Revenue | 11.64 | 10.99 |
| Analyst target | $196.72 | $71.56 |
| Target upside | +5.18% | +6.26% |
Growth, profitability & risk
| Metric | AVB | EQR |
|---|---|---|
| Revenue growth | 2.50% | 2.50% |
| Earnings growth | 40.30% | -64.60% |
| EPS growth | +40.30% | -64.60% |
| FCF margin | +45.49% | +45.50% |
| Operating margin | 29.32% | 27.40% |
| Profit margin | 37.27% | 30.63% |
| ROIC proxy | 9.72% | 8.67% |
| Return on equity | 9.72% | 8.67% |
| Dividend yield | 3.81% | 4.17% |
| Beta | 0.79 | 0.76 |
| Debt/equity | 81.31 | 78.42 |
| Current ratio | 0.38 | 0.12 |
| Quick ratio | 0.05 | 0.03 |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
AVB max drawdown22.56%
EQR max drawdown16.04%
AVB max wkly drop8.58%
EQR max wkly drop7.58%
5Y risk snapshot
AVB max drawdown38.36%
EQR max drawdown39.32%
AVB max wkly drop12.72%
EQR max wkly drop13.27%
10Y risk snapshot
AVB max drawdown46.91%
EQR max drawdown45.90%
AVB max wkly drop31.86%
EQR max wkly drop24.13%
Performance metrics by period
| Period | Metric | AVB | EQR |
|---|---|---|---|
| 1Y | Growth | -14.14% | -6.94% |
| CAGR | -14.16% | -6.95% | |
| Sharpe ratio | -0.87 | -0.47 | |
| Max drawdown | 22.56% | 16.04% | |
| Max daily drop | 5.11% | 4.15% | |
| Max wkly drop | 8.58% | 7.58% | |
| 5Y | Growth | -4.55% | -6.20% |
| CAGR | -0.93% | -1.27% | |
| Sharpe ratio | -0.13 | -0.14 | |
| Max drawdown | 38.36% | 39.32% | |
| Max daily drop | 6.88% | 6.94% | |
| Max wkly drop | 12.72% | 13.27% | |
| 10Y | Growth | +37.64% | +40.04% |
| CAGR | +3.25% | +3.43% | |
| Sharpe ratio | 0.07 | 0.08 | |
| Max drawdown | 46.91% | 45.90% | |
| Max daily drop | 15.37% | 16.91% | |
| Max wkly drop | 31.86% | 24.13% |
Business comparison
| Category | AVB | EQR |
|---|---|---|
| Company | AvalonBay Communities, Inc. | Equity Residential |
| Sector | Real Estate | Real Estate |
| Industry | N/A | N/A |
| Core business | AvalonBay Communities is a large-cap residential REIT owning and operating 90,000+ apartment units in coastal US markets — New England, Mid-Atlantic, Pacific Northwest, and Northern and Southern California. AVB is known for its active development pipeline, constructing and delivering new Class A apartment communities as a consistent value creation mechanism beyond acquiring stabilized assets. Its Avalon and eaves brands cover luxury and attainable luxury positioning. | Equity Residential is a large-cap apartment REIT focused on high-quality urban and suburban apartments in high-barrier-to-entry coastal markets — Boston, New York, Washington DC, Seattle, San Francisco, and Southern California. EQR targets affluent renters ('renters-by-choice') who can afford to own but prefer to rent for flexibility. Unlike AvalonBay's active development, EQR primarily acquires stabilized communities rather than developing new ones, focusing on asset management and portfolio optimization. |
| Investor focus | Investors track same-store revenue growth, development starts and delivery yields, new market expansion (Southeast and Mountain West), and FFO per share growth as the development pipeline converts to income-producing assets. | Investors track same-store revenue growth, occupancy and realized rent per unit, acquisition and disposition strategy, and dividend sustainability from stable coastal market NOI. |
AVB strengths
- →Active development pipeline creates new apartment communities at development yields exceeding cap rates on acquired stabilized assets
- →Coastal market concentration benefits from structural supply constraints — permitting and construction timelines in coastal cities limit competitive new supply
- →Expansion into Southeast (Dallas, Denver, Southeast metros) diversifies AVB's coastal concentration and accesses faster-growing markets
EQR strengths
- →Renters-by-choice demographic of high-income professionals provides better credit quality, lower turnover costs, and premium rent potential
- →High-barrier coastal markets (NYC, Boston, SF, Seattle, DC) have structural supply constraints limiting competitive apartment development
- →Conservative balance sheet with primarily acquisition-focused (vs development-risk) strategy reduces execution risk vs developer-heavy peers
Risks to watch — AVB
- →Coastal market rent growth has been under pressure as remote work reduced premium for urban coastal proximity post-COVID
- →Development pipeline is capital-intensive — cost overruns, permitting delays, and interest rate increases can compress development yields
- →Sun Belt migration shifted demand from coastal to Southeast/Mountain West markets where AVB has historically had less presence
Risks to watch — EQR
- →Same-store revenue performance in coastal markets has been volatile as remote work and urban preference changes affected demand
- →EQR's renters-by-choice model depends on affluent renters continuing to prefer renting over buying — rising home prices support this, but shifts can occur
- →Acquisition strategy requires asset pricing to remain favorable — in low-cap-rate environments, accretive acquisitions are harder to execute
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