AMH vs. ESS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AMH and ESS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AMH’s market capitalization stands at 13.16 billion USD, while ESS’s is 18.30 billion USD, indicating their market valuations are broadly comparable.
With betas of 0.77 for AMH and 0.80 for ESS, both stocks show similar sensitivity to overall market movements.
| Symbol | AMH | ESS |
|---|---|---|
| Company Name | American Homes 4 Rent | Essex Property Trust, Inc. |
| Country | US | US |
| Sector | Real Estate | Real Estate |
| Industry | REIT - Residential | REIT - Residential |
| CEO | Bryan Smith | Angela L. Kleiman |
| Price | 35.6 USD | 284.2 USD |
| Market Cap | 13.16 billion USD | 18.30 billion USD |
| Beta | 0.77 | 0.80 |
| Exchange | NYSE | NYSE |
| IPO Date | August 1, 2013 | June 7, 1994 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AMH and ESS by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AMH
5.78%
REIT - Residential Industry
- Max
- 23.34%
- Q3
- 9.08%
- Median
- 3.28%
- Q1
- -1.03%
- Min
- -7.42%
Return on Equity is often not a primary performance indicator in the REIT - Residential industry.
ESS
12.20%
REIT - Residential Industry
- Max
- 23.34%
- Q3
- 9.08%
- Median
- 3.28%
- Q1
- -1.03%
- Min
- -7.42%
Return on Equity is often not a primary performance indicator in the REIT - Residential industry.
Return on Invested Capital
AMH
4.43%
REIT - Residential Industry
- Max
- 5.46%
- Q3
- 5.07%
- Median
- 3.70%
- Q1
- 2.44%
- Min
- -1.04%
Return on Invested Capital is often not a primary measure of capital efficiency in the REIT - Residential industry.
ESS
5.20%
REIT - Residential Industry
- Max
- 5.46%
- Q3
- 5.07%
- Median
- 3.70%
- Q1
- 2.44%
- Min
- -1.04%
Return on Invested Capital is often not a primary measure of capital efficiency in the REIT - Residential industry.
Net Profit Margin
AMH
23.15%
REIT - Residential Industry
- Max
- 38.86%
- Q3
- 24.60%
- Median
- 7.62%
- Q1
- -2.65%
- Min
- -12.57%
In the REIT - Residential industry, Net Profit Margin is often not the primary profitability metric.
ESS
37.08%
REIT - Residential Industry
- Max
- 38.86%
- Q3
- 24.60%
- Median
- 7.62%
- Q1
- -2.65%
- Min
- -12.57%
In the REIT - Residential industry, Net Profit Margin is often not the primary profitability metric.
Operating Profit Margin
AMH
24.05%
REIT - Residential Industry
- Max
- 45.77%
- Q3
- 30.12%
- Median
- 19.58%
- Q1
- 17.52%
- Min
- 8.22%
In the REIT - Residential industry, Operating Profit Margin is often not the primary measure of operational efficiency.
ESS
45.77%
REIT - Residential Industry
- Max
- 45.77%
- Q3
- 30.12%
- Median
- 19.58%
- Q1
- 17.52%
- Min
- 8.22%
In the REIT - Residential industry, Operating Profit Margin is often not the primary measure of operational efficiency.
Profitability at a Glance
| Symbol | AMH | ESS |
|---|---|---|
| Return on Equity (TTM) | 5.78% | 12.20% |
| Return on Assets (TTM) | 3.08% | 5.10% |
| Return on Invested Capital (TTM) | 4.43% | 5.20% |
| Net Profit Margin (TTM) | 23.15% | 37.08% |
| Operating Profit Margin (TTM) | 24.05% | 45.77% |
| Gross Profit Margin (TTM) | 56.17% | 55.94% |
Financial Strength
Current Ratio
AMH
0.07
REIT - Residential Industry
- Max
- 2.65
- Q3
- 2.05
- Median
- 0.62
- Q1
- 0.13
- Min
- 0.05
For the REIT - Residential industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
ESS
1.01
REIT - Residential Industry
- Max
- 2.65
- Q3
- 2.05
- Median
- 0.62
- Q1
- 0.13
- Min
- 0.05
For the REIT - Residential industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
Debt-to-Equity Ratio
AMH
0.69
REIT - Residential Industry
- Max
- 1.76
- Q3
- 1.60
- Median
- 1.15
- Q1
- 0.71
- Min
- 0.06
Falling into the lower quartile for the REIT - Residential industry, AMH’s Debt-to-Equity Ratio of 0.69 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
ESS
1.23
REIT - Residential Industry
- Max
- 1.76
- Q3
- 1.60
- Median
- 1.15
- Q1
- 0.71
- Min
- 0.06
ESS’s Debt-to-Equity Ratio of 1.23 is typical for the REIT - Residential industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
AMH
2.47
REIT - Residential Industry
- Max
- 4.02
- Q3
- 3.42
- Median
- 2.09
- Q1
- 0.77
- Min
- -0.24
AMH’s Interest Coverage Ratio of 2.47 is positioned comfortably within the norm for the REIT - Residential industry, indicating a standard and healthy capacity to cover its interest payments.
ESS
3.42
REIT - Residential Industry
- Max
- 4.02
- Q3
- 3.42
- Median
- 2.09
- Q1
- 0.77
- Min
- -0.24
ESS’s Interest Coverage Ratio of 3.42 is positioned comfortably within the norm for the REIT - Residential industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AMH | ESS |
|---|---|---|
| Current Ratio (TTM) | 0.07 | 1.01 |
| Quick Ratio (TTM) | 0.07 | 0.74 |
| Debt-to-Equity Ratio (TTM) | 0.69 | 1.23 |
| Debt-to-Asset Ratio (TTM) | 0.37 | 0.52 |
| Net Debt-to-EBITDA Ratio (TTM) | 5.59 | 4.56 |
| Interest Coverage Ratio (TTM) | 2.47 | 3.42 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AMH and ESS. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AMH
3.15%
REIT - Residential Industry
- Max
- 6.90%
- Q3
- 5.06%
- Median
- 3.70%
- Q1
- 3.35%
- Min
- 1.32%
AMH’s Dividend Yield of 3.15% is in the lower quartile for the REIT - Residential industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
ESS
3.53%
REIT - Residential Industry
- Max
- 6.90%
- Q3
- 5.06%
- Median
- 3.70%
- Q1
- 3.35%
- Min
- 1.32%
ESS’s Dividend Yield of 3.53% is consistent with its peers in the REIT - Residential industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AMH
72.77%
REIT - Residential Industry
- Max
- 647.59%
- Q3
- 358.74%
- Median
- 123.11%
- Q1
- 73.29%
- Min
- 0.00%
AMH’s Dividend Payout Ratio of 72.77% is in the lower quartile for the REIT - Residential industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
ESS
70.27%
REIT - Residential Industry
- Max
- 647.59%
- Q3
- 358.74%
- Median
- 123.11%
- Q1
- 73.29%
- Min
- 0.00%
ESS’s Dividend Payout Ratio of 70.27% is in the lower quartile for the REIT - Residential industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
Dividend at a Glance
| Symbol | AMH | ESS |
|---|---|---|
| Dividend Yield (TTM) | 3.15% | 3.53% |
| Dividend Payout Ratio (TTM) | 72.77% | 70.27% |
Valuation
Price-to-Earnings Ratio
AMH
32.19
REIT - Residential Industry
- Max
- 209.03
- Q3
- 105.65
- Median
- 37.25
- Q1
- 29.74
- Min
- 25.36
The P/E Ratio is often not the primary metric for valuation in the REIT - Residential industry.
ESS
27.20
REIT - Residential Industry
- Max
- 209.03
- Q3
- 105.65
- Median
- 37.25
- Q1
- 29.74
- Min
- 25.36
The P/E Ratio is often not the primary metric for valuation in the REIT - Residential industry.
Forward P/E to Growth Ratio
AMH
-0.32
REIT - Residential Industry
- Max
- 8.96
- Q3
- 6.40
- Median
- 3.83
- Q1
- 0.72
- Min
- 0.26
The Forward PEG Ratio is often not a primary valuation metric in the REIT - Residential industry.
ESS
-0.27
REIT - Residential Industry
- Max
- 8.96
- Q3
- 6.40
- Median
- 3.83
- Q1
- 0.72
- Min
- 0.26
The Forward PEG Ratio is often not a primary valuation metric in the REIT - Residential industry.
Price-to-Sales Ratio
AMH
7.43
REIT - Residential Industry
- Max
- 10.14
- Q3
- 8.03
- Median
- 7.51
- Q1
- 5.76
- Min
- 3.29
AMH’s P/S Ratio of 7.43 aligns with the market consensus for the REIT - Residential industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
ESS
10.10
REIT - Residential Industry
- Max
- 10.14
- Q3
- 8.03
- Median
- 7.51
- Q1
- 5.76
- Min
- 3.29
ESS’s P/S Ratio of 10.10 is in the upper echelon for the REIT - Residential industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
AMH
1.84
REIT - Residential Industry
- Max
- 4.04
- Q3
- 3.00
- Median
- 2.31
- Q1
- 1.78
- Min
- 0.81
AMH’s P/B Ratio of 1.84 is within the conventional range for the REIT - Residential industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
ESS
3.28
REIT - Residential Industry
- Max
- 4.04
- Q3
- 3.00
- Median
- 2.31
- Q1
- 1.78
- Min
- 0.81
ESS’s P/B Ratio of 3.28 is in the upper tier for the REIT - Residential industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | AMH | ESS |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 32.19 | 27.20 |
| Forward PEG Ratio (TTM) | -0.32 | -0.27 |
| Price-to-Sales Ratio (P/S, TTM) | 7.43 | 10.10 |
| Price-to-Book Ratio (P/B, TTM) | 1.84 | 3.28 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 18.68 | 20.25 |
| EV-to-EBITDA (TTM) | 20.69 | 16.91 |
| EV-to-Sales (TTM) | 10.19 | 13.82 |