WallStSmart

AvalonBay Communities Inc (AVB)vsVeris Residential Inc (VRE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AvalonBay Communities Inc generates 947% more annual revenue ($3.06B vs $292.15M). AVB leads profitability with a 37.3% profit margin vs 24.6%. AVB appears more attractively valued with a PEG of 6.97. AVB 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

VRE

Buy

57

out of 100

Grade: C

Growth: 6.0Profit: 6.0Value: 3.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AVBUndervalued (+10.9%)

Margin of Safety

+10.9%

Fair Value

$201.79

Current Price

$189.72

$12.07 discount

UndervaluedFair: $201.79Overvalued
VRESignificantly Overvalued (-43.9%)

Margin of Safety

-43.9%

Fair Value

$11.37

Current Price

$18.99

$7.62 premium

UndervaluedFair: $11.37Overvalued

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

VRE3 strengths · Avg: 9.0/10
EPS GrowthGrowth
269.4%10/10

Earnings expanding 269.4% YoY

Profit MarginProfitability
24.6%9/10

Keeps 25 of every $100 in revenue as profit

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

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

VRE4 concerns · Avg: 3.0/10
P/E RatioValuation
26.0x4/10

Moderate valuation

Market CapQuality
$1.94B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

PEG RatioValuation
8.592/10

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 : VRE

The strongest argument for VRE centers on EPS Growth, Profit Margin, Price/Book. Profitability is solid with margins at 24.6% and operating margin at 18.5%.

Bear Case : AVB

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

Bear Case : VRE

The primary concerns for VRE are P/E Ratio, Market Cap, Return on Equity.

Key Dynamics to Monitor

AVB profiles as a value stock while VRE is a declining play — different risk/reward profiles.

VRE carries more volatility with a beta of 1.07 — expect wider price swings.

AVB is growing revenue faster at 2.5% — sustainability is the question.

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

Bottom Line

AVB scores higher overall (59/100 vs 57/100), backed by strong 37.3% margins. 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.

Veris Residential Inc

REAL ESTATE · REIT - RESIDENTIAL · USA

Veris Residential Inc. (VRE) is a leading real estate investment trust (REIT) that specializes in the acquisition, development, and management of high-quality residential properties situated in prime urban locations across the United States. The company is committed to sustainability and enhancing community living, which underpins its diversified portfolio tailored to meet the evolving needs of various demographic groups. By leveraging its extensive industry knowledge and strategically focusing on modern living spaces, Veris Residential is well-positioned to benefit from the increasing demand in the housing sector, aiming to deliver consistent rental income and long-term capital appreciation, thus enhancing shareholder value and ensuring robust returns for its investors.

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