ARE vs. ELS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ARE and ELS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ARE’s market capitalization stands at 13.31 billion USD, while ELS’s is 11.88 billion USD, indicating their market valuations are broadly comparable.
ARE’s beta of 1.27 points to significantly higher volatility compared to ELS (beta: 0.75), suggesting ARE has greater potential for both gains and losses relative to market movements.
| Symbol | ARE | ELS |
|---|---|---|
| Company Name | Alexandria Real Estate Equities, Inc. | Equity LifeStyle Properties, Inc. |
| Country | US | US |
| Sector | Real Estate | Real Estate |
| Industry | REIT - Office | REIT - Residential |
| CEO | Peter M. Moglia | Marguerite M. Nader |
| Price | 76.92 USD | 62.12 USD |
| Market Cap | 13.31 billion USD | 11.88 billion USD |
| Beta | 1.27 | 0.75 |
| Exchange | NYSE | NYSE |
| IPO Date | May 28, 1997 | February 25, 1993 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ARE and ELS 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
ARE
0.72%
REIT - Office Industry
- Max
- 9.40%
- Q3
- 3.15%
- Median
- 0.71%
- Q1
- -2.53%
- Min
- -10.33%
Return on Equity is often not a primary performance indicator in the REIT - Office industry.
ELS
23.34%
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
ARE
194.97%
REIT - Office Industry
- Max
- 5.21%
- Q3
- 3.70%
- Median
- 2.50%
- Q1
- 1.66%
- Min
- 0.56%
Return on Invested Capital is often not a primary measure of capital efficiency in the REIT - Office industry.
ELS
13.67%
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
ARE
5.70%
REIT - Office Industry
- Max
- 21.26%
- Q3
- 7.69%
- Median
- 3.16%
- Q1
- -9.27%
- Min
- -30.12%
In the REIT - Office industry, Net Profit Margin is often not the primary profitability metric.
ELS
24.60%
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
ARE
38.61%
REIT - Office Industry
- Max
- 38.61%
- Q3
- 26.61%
- Median
- 20.01%
- Q1
- 11.93%
- Min
- -1.11%
In the REIT - Office industry, Operating Profit Margin is often not the primary measure of operational efficiency.
ELS
44.87%
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 | ARE | ELS |
|---|---|---|
| Return on Equity (TTM) | 0.72% | 23.34% |
| Return on Assets (TTM) | 0.37% | 6.57% |
| Return on Invested Capital (TTM) | 194.97% | 13.67% |
| Net Profit Margin (TTM) | 5.70% | 24.60% |
| Operating Profit Margin (TTM) | 38.61% | 44.87% |
| Gross Profit Margin (TTM) | 37.76% | 48.70% |
Financial Strength
Current Ratio
ARE
--
REIT - Office Industry
- Max
- 4.34
- Q3
- 2.61
- Median
- 1.46
- Q1
- 0.88
- Min
- 0.01
For the REIT - Office industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
ELS
0.14
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
ARE
--
REIT - Office Industry
- Max
- 2.25
- Q3
- 1.66
- Median
- 1.33
- Q1
- 0.95
- Min
- 0.63
Debt-to-Equity Ratio data for ARE is currently unavailable.
ELS
1.76
REIT - Residential Industry
- Max
- 1.76
- Q3
- 1.60
- Median
- 1.15
- Q1
- 0.71
- Min
- 0.06
ELS’s leverage is in the upper quartile of the REIT - Residential industry, with a Debt-to-Equity Ratio of 1.76. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio
ARE
6.43
REIT - Office Industry
- Max
- 2.60
- Q3
- 1.69
- Median
- 1.28
- Q1
- 0.62
- Min
- -0.11
With an Interest Coverage Ratio of 6.43, ARE demonstrates a superior capacity to service its debt, placing it well above the typical range for the REIT - Office industry. This stems from either robust earnings or a conservative debt load.
ELS
9.33
REIT - Residential Industry
- Max
- 4.02
- Q3
- 3.42
- Median
- 2.09
- Q1
- 0.77
- Min
- -0.24
With an Interest Coverage Ratio of 9.33, ELS demonstrates a superior capacity to service its debt, placing it well above the typical range for the REIT - Residential industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | ARE | ELS |
|---|---|---|
| Current Ratio (TTM) | -- | 0.14 |
| Quick Ratio (TTM) | -- | 0.14 |
| Debt-to-Equity Ratio (TTM) | -- | 1.76 |
| Debt-to-Asset Ratio (TTM) | -- | 0.55 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.23 | 4.53 |
| Interest Coverage Ratio (TTM) | 6.43 | 9.33 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ARE and ELS. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ARE
6.84%
REIT - Office Industry
- Max
- 14.12%
- Q3
- 6.26%
- Median
- 4.71%
- Q1
- 2.62%
- Min
- 0.00%
With a Dividend Yield of 6.84%, ARE offers a more attractive income stream than most of its peers in the REIT - Office industry, signaling a strong commitment to shareholder returns.
ELS
3.20%
REIT - Residential Industry
- Max
- 6.90%
- Q3
- 5.06%
- Median
- 3.70%
- Q1
- 3.35%
- Min
- 1.32%
ELS’s Dividend Yield of 3.20% 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.
Dividend Payout Ratio
ARE
492.05%
REIT - Office Industry
- Max
- 1,116.08%
- Q3
- 556.10%
- Median
- 233.84%
- Q1
- 123.25%
- Min
- 49.88%
ARE’s Dividend Payout Ratio of 492.05% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
ELS
73.29%
REIT - Residential Industry
- Max
- 647.59%
- Q3
- 358.74%
- Median
- 123.11%
- Q1
- 73.29%
- Min
- 0.00%
ELS’s Dividend Payout Ratio of 73.29% is within the typical range for the REIT - Residential industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ARE | ELS |
|---|---|---|
| Dividend Yield (TTM) | 6.84% | 3.20% |
| Dividend Payout Ratio (TTM) | 492.05% | 73.29% |
Valuation
Price-to-Earnings Ratio
ARE
95.37
REIT - Office Industry
- Max
- 90.97
- Q3
- 72.34
- Median
- 44.07
- Q1
- 23.31
- Min
- 19.29
The P/E Ratio is often not the primary metric for valuation in the REIT - Office industry.
ELS
31.98
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
ARE
-0.95
REIT - Office Industry
- Max
- 24.48
- Q3
- 14.97
- Median
- 1.22
- Q1
- 0.24
- Min
- 0.04
The Forward PEG Ratio is often not a primary valuation metric in the REIT - Office industry.
ELS
6.19
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
ARE
5.51
REIT - Office Industry
- Max
- 5.80
- Q3
- 5.05
- Median
- 3.85
- Q1
- 2.27
- Min
- 1.19
ARE’s P/S Ratio of 5.51 is in the upper echelon for the REIT - Office 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.
ELS
7.88
REIT - Residential Industry
- Max
- 10.14
- Q3
- 8.03
- Median
- 7.51
- Q1
- 5.76
- Min
- 3.29
ELS’s P/S Ratio of 7.88 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.
Price-to-Book Ratio
ARE
0.60
REIT - Office Industry
- Max
- 2.09
- Q3
- 1.38
- Median
- 0.98
- Q1
- 0.74
- Min
- 0.14
ARE’s P/B Ratio of 0.60 is in the lower quartile for the REIT - Office industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
ELS
6.78
REIT - Residential Industry
- Max
- 4.04
- Q3
- 3.00
- Median
- 2.31
- Q1
- 1.78
- Min
- 0.81
At 6.78, ELS’s P/B Ratio is at an extreme premium to the REIT - Residential industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | ARE | ELS |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 95.37 | 31.98 |
| Forward PEG Ratio (TTM) | -0.95 | 6.19 |
| Price-to-Sales Ratio (P/S, TTM) | 5.51 | 7.88 |
| Price-to-Book Ratio (P/B, TTM) | 0.60 | 6.78 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 9.70 | 32.93 |
| EV-to-EBITDA (TTM) | 6.16 | 21.96 |
| EV-to-Sales (TTM) | 5.32 | 9.92 |