WallStSmart

AvalonBay Communities Inc (AVB)vsTranscontinental Realty Investors (TCI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AvalonBay Communities Inc generates 6055% more annual revenue ($3.08B vs $50.10M). AVB leads profitability with a 33.3% profit margin vs 16.1%. AVB trades at a lower P/E of 25.3x. AVB earns a higher WallStSmart Score of 51/100 (C-).

AVB

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 7.5Value: 4.7Quality: 4.0
Piotroski: 3/9Altman Z: 1.01

TCI

Hold

36

out of 100

Grade: F

Growth: 5.3Profit: 4.0Value: 4.7Quality: 9.0
Piotroski: 4/9Altman Z: 3.29
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AVBUndervalued (+10.4%)

Margin of Safety

+10.4%

Fair Value

$200.74

Current Price

$184.06

$16.68 discount

UndervaluedFair: $200.74Overvalued

Intrinsic value data unavailable for TCI.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AVB3 strengths · Avg: 9.3/10
Profit MarginProfitability
33.3%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
30.6%10/10

Strong operational efficiency at 30.6%

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

TCI3 strengths · Avg: 9.7/10
Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.2910/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.259/10

Conservative balance sheet, low leverage

Areas to Watch

AVB4 concerns · Avg: 3.3/10
P/E RatioValuation
25.3x4/10

Moderate valuation

Revenue GrowthGrowth
2.3%4/10

2.3% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
6.972/10

Expensive relative to growth rate

TCI4 concerns · Avg: 2.5/10
Market CapQuality
$330.69M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
1.1%3/10

ROE of 1.1% — below average capital efficiency

P/E RatioValuation
40.1x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-96.4%2/10

Earnings declined 96.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : AVB

The strongest argument for AVB centers on Profit Margin, Operating Margin, Price/Book. Profitability is solid with margins at 33.3% and operating margin at 30.6%.

Bull Case : TCI

The strongest argument for TCI centers on Price/Book, Altman Z-Score, Debt/Equity. Profitability is solid with margins at 16.1% and operating margin at -18.2%.

Bear Case : AVB

The primary concerns for AVB are P/E Ratio, Revenue Growth, Piotroski F-Score.

Bear Case : TCI

The primary concerns for TCI are Market Cap, Return on Equity, P/E Ratio. A P/E of 40.1x leaves little room for execution misses.

Key Dynamics to Monitor

AVB profiles as a value stock while TCI is a mature play — different risk/reward profiles.

AVB carries more volatility with a beta of 0.77 — expect wider price swings.

TCI is growing revenue faster at 5.8% — sustainability is the question.

AVB generates stronger free cash flow (304M), providing more financial flexibility.

Bottom Line

AVB scores higher overall (51/100 vs 36/100), backed by strong 33.3% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

AvalonBay Communities Inc

REAL ESTATE · REIT - RESIDENTIAL · USA

AvalonBay Communities, Inc. is a publicly traded real estate investment trust that invests in apartments.

Transcontinental Realty Investors

REAL ESTATE · REAL ESTATE SERVICES · USA

Transcontinental Realty Investors, Inc., a Dallas-based real estate investment company, has a diverse portfolio of capital real estate located throughout the United States, including apartments, office buildings, shopping centers, and urbanized and undeveloped land.

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