WallStSmart

AvalonBay Communities Inc (AVB)vsUDR Inc (UDR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AvalonBay Communities Inc generates 73% more annual revenue ($3.06B vs $1.77B). AVB leads profitability with a 37.3% profit margin vs 27.8%. AVB appears more attractively valued with a PEG of 6.97. UDR earns a higher WallStSmart Score of 59/100 (C).

AVB

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 7.5Value: 4.7Quality: 4.0
Piotroski: 3/9Altman Z: 1.01

UDR

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 7.0Value: 6.0Quality: 3.5
Piotroski: 5/9Altman Z: 0.13
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AVBUndervalued (+10.7%)

Margin of Safety

+10.7%

Fair Value

$201.34

Current Price

$193.96

$7.38 discount

UndervaluedFair: $201.34Overvalued
UDRUndervalued (+30.3%)

Margin of Safety

+30.3%

Fair Value

$57.04

Current Price

$41.09

$15.95 discount

UndervaluedFair: $57.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AVB4 strengths · Avg: 8.5/10
Profit MarginProfitability
37.3%10/10

Keeps 37 of every $100 in revenue as profit

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.3%8/10

Strong operational efficiency at 29.3%

EPS GrowthGrowth
40.3%8/10

Earnings expanding 40.3% YoY

UDR3 strengths · Avg: 9.0/10
EPS GrowthGrowth
151.6%10/10

Earnings expanding 151.6% YoY

Profit MarginProfitability
27.8%9/10

Keeps 28 of every $100 in revenue as profit

Operating MarginProfitability
22.0%8/10

Strong operational efficiency at 22.0%

Areas to Watch

AVB4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
2.5%4/10

2.5% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
6.972/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.012/10

Distress zone — elevated risk

UDR4 concerns · Avg: 3.3/10
P/E RatioValuation
26.1x4/10

Moderate valuation

Revenue GrowthGrowth
4.2%4/10

4.2% revenue growth

Debt/EquityHealth
1.783/10

Elevated debt levels

PEG RatioValuation
8.172/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : AVB

The strongest argument for AVB centers on Profit Margin, Price/Book, Operating Margin. Profitability is solid with margins at 37.3% and operating margin at 29.3%.

Bull Case : UDR

The strongest argument for UDR centers on EPS Growth, Profit Margin, Operating Margin. Profitability is solid with margins at 27.8% and operating margin at 22.0%.

Bear Case : AVB

The primary concerns for AVB are Revenue Growth, Piotroski F-Score, PEG Ratio.

Bear Case : UDR

The primary concerns for UDR are P/E Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.78 is elevated, increasing financial risk.

Key Dynamics to Monitor

AVB carries more volatility with a beta of 0.79 — expect wider price swings.

UDR is growing revenue faster at 4.2% — sustainability is the question.

AVB generates stronger free cash flow (359M), providing more financial flexibility.

Monitor REIT - RESIDENTIAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AVB scores higher overall (59/100 vs 59/100), backed by strong 37.3% margins. UDR offers better value entry with a 30.3% 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.

AvalonBay Communities Inc

REAL ESTATE · REIT - RESIDENTIAL · USA

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

UDR Inc

REAL ESTATE · REIT - RESIDENTIAL · USA

UDR Inc. is a publicly traded real estate investment trust that invests in apartments. The company is organized in Maryland with its headquarters in Highlands Ranch, Colorado.

Want to dig deeper into these stocks?