WallStSmart

Alexandria Real Estate Equities Inc (ARE)vsHighwoods Properties Inc (HIW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Alexandria Real Estate Equities Inc generates 239% more annual revenue ($2.84B vs $838.86M). HIW leads profitability with a 20.1% profit margin vs -36.1%. ARE appears more attractively valued with a PEG of 3.24. HIW earns a higher WallStSmart Score of 65/100 (C+).

ARE

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 4.0Value: 5.7Quality: 4.8
Piotroski: 5/9

HIW

Buy

65

out of 100

Grade: C+

Growth: 6.0Profit: 6.5Value: 6.0Quality: 4.5
Piotroski: 4/9Altman Z: 0.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AREUndervalued (+51.1%)

Margin of Safety

+51.1%

Fair Value

$110.01

Current Price

$51.14

$58.87 discount

UndervaluedFair: $110.01Overvalued
HIWUndervalued (+48.5%)

Margin of Safety

+48.5%

Fair Value

$45.34

Current Price

$30.93

$14.41 discount

UndervaluedFair: $45.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARE2 strengths · Avg: 10.0/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

EPS GrowthGrowth
648.0%10/10

Earnings expanding 648.0% YoY

HIW4 strengths · Avg: 9.3/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
400.2%10/10

Earnings expanding 400.2% YoY

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
26.3%8/10

Strong operational efficiency at 26.3%

Areas to Watch

ARE4 concerns · Avg: 2.0/10
PEG RatioValuation
3.242/10

Expensive relative to growth rate

Return on EquityProfitability
-6.5%2/10

ROE of -6.5% — below average capital efficiency

Revenue GrowthGrowth
-11.9%2/10

Revenue declined 11.9%

Free Cash FlowQuality
$-66.35M2/10

Negative free cash flow — burning cash

HIW4 concerns · Avg: 2.5/10
Return on EquityProfitability
3.8%3/10

ROE of 3.8% — below average capital efficiency

Debt/EquityHealth
1.473/10

Elevated debt levels

PEG RatioValuation
7.772/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.552/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ARE

The strongest argument for ARE centers on Price/Book, EPS Growth.

Bull Case : HIW

The strongest argument for HIW centers on Price/Book, EPS Growth, Profit Margin. Profitability is solid with margins at 20.1% and operating margin at 26.3%.

Bear Case : ARE

The primary concerns for ARE are PEG Ratio, Return on Equity, Revenue Growth.

Bear Case : HIW

The primary concerns for HIW are Return on Equity, Debt/Equity, PEG Ratio.

Key Dynamics to Monitor

ARE profiles as a turnaround stock while HIW is a mature play — different risk/reward profiles.

ARE carries more volatility with a beta of 1.17 — expect wider price swings.

HIW is growing revenue faster at 7.5% — sustainability is the question.

HIW generates stronger free cash flow (77M), providing more financial flexibility.

Bottom Line

HIW scores higher overall (65/100 vs 51/100), backed by strong 20.1% margins. ARE offers better value entry with a 51.1% 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.

Alexandria Real Estate Equities Inc

REAL ESTATE · REIT - OFFICE · USA

Alexandria Real Estate Equities, Inc. is an American real estate investment trust that invests in office buildings and laboratories leased to tenants in the life science and technology industries.

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Highwoods Properties Inc

REAL ESTATE · REIT - OFFICE · USA

Highwoods Properties, Inc., based in Raleigh, is a publicly traded (NYSE: HIW) real estate investment trust (?

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