WallStSmart

American Homes 4 Rent (AMH)vsEssex Property Trust Inc (ESS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Essex Property Trust Inc generates 6% more annual revenue ($1.97B vs $1.86B). ESS leads profitability with a 29.1% profit margin vs 25.3%. ESS appears more attractively valued with a PEG of 7.39. AMH earns a higher WallStSmart Score of 60/100 (C+).

AMH

Buy

60

out of 100

Grade: C+

Growth: 6.0Profit: 7.0Value: 6.0Quality: 4.5
Piotroski: 5/9Altman Z: 1.13

ESS

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 8.0Value: 5.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AMHUndervalued (+84.6%)

Margin of Safety

+84.6%

Fair Value

$205.85

Current Price

$33.27

$172.58 discount

UndervaluedFair: $205.85Overvalued
ESSUndervalued (+35.2%)

Margin of Safety

+35.2%

Fair Value

$403.62

Current Price

$285.43

$118.19 discount

UndervaluedFair: $403.62Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AMH3 strengths · Avg: 8.3/10
Profit MarginProfitability
25.3%9/10

Keeps 25 of every $100 in revenue as profit

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.1%8/10

Strong operational efficiency at 25.1%

ESS2 strengths · Avg: 9.5/10
Operating MarginProfitability
35.2%10/10

Strong operational efficiency at 35.2%

Profit MarginProfitability
29.1%9/10

Keeps 29 of every $100 in revenue as profit

Areas to Watch

AMH4 concerns · Avg: 3.3/10
P/E RatioValuation
26.1x4/10

Moderate valuation

Revenue GrowthGrowth
2.8%4/10

2.8% revenue growth

Return on EquityProfitability
6.8%3/10

ROE of 6.8% — below average capital efficiency

PEG RatioValuation
29.822/10

Expensive relative to growth rate

ESS4 concerns · Avg: 2.8/10
P/E RatioValuation
31.9x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.263/10

Elevated debt levels

PEG RatioValuation
7.392/10

Expensive relative to growth rate

EPS GrowthGrowth
-47.8%2/10

Earnings declined 47.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : AMH

The strongest argument for AMH centers on Profit Margin, Price/Book, Operating Margin. Profitability is solid with margins at 25.3% and operating margin at 25.1%.

Bull Case : ESS

The strongest argument for ESS centers on Operating Margin, Profit Margin. Profitability is solid with margins at 29.1% and operating margin at 35.2%.

Bear Case : AMH

The primary concerns for AMH are P/E Ratio, Revenue Growth, Return on Equity.

Bear Case : ESS

The primary concerns for ESS are P/E Ratio, Debt/Equity, PEG Ratio.

Key Dynamics to Monitor

AMH profiles as a value stock while ESS is a mature play — different risk/reward profiles.

AMH carries more volatility with a beta of 0.83 — expect wider price swings.

ESS is growing revenue faster at 6.4% — sustainability is the question.

ESS generates stronger free cash flow (244M), providing more financial flexibility.

Bottom Line

AMH scores higher overall (60/100 vs 53/100), backed by strong 25.3% margins. ESS offers better value entry with a 35.2% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

American Homes 4 Rent

REAL ESTATE · REIT - RESIDENTIAL · USA

American Homes 4 Rent (NYSE: AMH) is a leader in the single-family rental industry and American Homes 4 Rent is fast becoming a nationally recognized rental housing brand, known for its high quality, good value and satisfaction. of tenants.

Essex Property Trust Inc

REAL ESTATE · REIT - RESIDENTIAL · USA

Essex Property Trust is a publicly traded real estate investment trust that invests in apartments, primarily on the West Coast of the United States.

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