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AVB vs. DLR: A Head-to-Head Stock Comparison

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Here’s a clear look at AVB and DLR, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

DLR’s market capitalization of 58.13 billion USD is significantly greater than AVB’s 28.84 billion USD, highlighting its more substantial market valuation.

With betas of 0.87 for AVB and 0.97 for DLR, both stocks show similar sensitivity to overall market movements.

SymbolAVBDLR
Company NameAvalonBay Communities, Inc.Digital Realty Trust, Inc.
CountryUSUS
SectorReal EstateReal Estate
IndustryREIT - ResidentialREIT - Office
CEOBenjamin W. SchallAndrew P. Power
Price202.57 USD172.6 USD
Market Cap28.84 billion USD58.13 billion USD
Beta0.870.97
ExchangeNYSENYSE
IPO DateMarch 11, 1994October 29, 2004
ADRNoNo

Historical Performance

This chart compares the performance of AVB and DLR 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.

AVB vs. DLR: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AVB

9.65%

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.

DLR

2.04%

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.

AVB vs. DLR: A comparison of their ROE against their respective REIT - Residential and REIT - Office industry benchmarks.

Return on Invested Capital

AVB

4.55%

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.

DLR

1.07%

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.

AVB vs. DLR: A comparison of their ROIC against their respective REIT - Residential and REIT - Office industry benchmarks.

Net Profit Margin

AVB

38.86%

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.

DLR

7.65%

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.

AVB vs. DLR: A comparison of their Net Profit Margin against their respective REIT - Residential and REIT - Office industry benchmarks.

Operating Profit Margin

AVB

31.58%

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.

DLR

9.20%

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.

AVB vs. DLR: A comparison of their Operating Margin against their respective REIT - Residential and REIT - Office industry benchmarks.

Profitability at a Glance

SymbolAVBDLR
Return on Equity (TTM)9.65%2.04%
Return on Assets (TTM)5.40%0.96%
Return on Invested Capital (TTM)4.55%1.07%
Net Profit Margin (TTM)38.86%7.65%
Operating Profit Margin (TTM)31.58%9.20%
Gross Profit Margin (TTM)63.13%55.04%

Financial Strength

Current Ratio

AVB

0.22

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.

DLR

1.53

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.

AVB vs. DLR: A comparison of their Current Ratio against their respective REIT - Residential and REIT - Office industry benchmarks.

Debt-to-Equity Ratio

AVB

0.71

REIT - Residential Industry

Max
1.76
Q3
1.60
Median
1.15
Q1
0.71
Min
0.06

AVB’s Debt-to-Equity Ratio of 0.71 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.

DLR

0.86

REIT - Office Industry

Max
2.25
Q3
1.66
Median
1.33
Q1
0.95
Min
0.63

Falling into the lower quartile for the REIT - Office industry, DLR’s Debt-to-Equity Ratio of 0.86 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

AVB vs. DLR: A comparison of their D/E Ratio against their respective REIT - Residential and REIT - Office industry benchmarks.

Interest Coverage Ratio

AVB

4.02

REIT - Residential Industry

Max
4.02
Q3
3.42
Median
2.09
Q1
0.77
Min
-0.24

AVB’s Interest Coverage Ratio of 4.02 is in the upper quartile for the REIT - Residential industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

DLR

1.17

REIT - Office Industry

Max
2.60
Q3
1.69
Median
1.28
Q1
0.62
Min
-0.11

DLR’s Interest Coverage Ratio of 1.17 is positioned comfortably within the norm for the REIT - Office industry, indicating a standard and healthy capacity to cover its interest payments.

AVB vs. DLR: A comparison of their Interest Coverage against their respective REIT - Residential and REIT - Office industry benchmarks.

Financial Strength at a Glance

SymbolAVBDLR
Current Ratio (TTM)0.221.53
Quick Ratio (TTM)0.221.53
Debt-to-Equity Ratio (TTM)0.710.86
Debt-to-Asset Ratio (TTM)0.400.41
Net Debt-to-EBITDA Ratio (TTM)3.785.96
Interest Coverage Ratio (TTM)4.021.17

Growth

The following charts compare key year-over-year (YoY) growth metrics for AVB and DLR. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AVB vs. DLR: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AVB vs. DLR: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AVB vs. DLR: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AVB

3.41%

REIT - Residential Industry

Max
6.90%
Q3
5.06%
Median
3.70%
Q1
3.35%
Min
1.32%

AVB’s Dividend Yield of 3.41% is consistent with its peers in the REIT - Residential industry, providing a dividend return that is standard for its sector.

DLR

2.83%

REIT - Office Industry

Max
14.12%
Q3
6.26%
Median
4.71%
Q1
2.62%
Min
0.00%

DLR’s Dividend Yield of 2.83% is consistent with its peers in the REIT - Office industry, providing a dividend return that is standard for its sector.

AVB vs. DLR: A comparison of their Dividend Yield against their respective REIT - Residential and REIT - Office industry benchmarks.

Dividend Payout Ratio

AVB

84.58%

REIT - Residential Industry

Max
647.59%
Q3
358.74%
Median
123.11%
Q1
73.29%
Min
0.00%

AVB’s Dividend Payout Ratio of 84.58% is within the typical range for the REIT - Residential industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

DLR

392.93%

REIT - Office Industry

Max
1,116.08%
Q3
556.10%
Median
233.84%
Q1
123.25%
Min
49.88%

DLR’s Dividend Payout Ratio of 392.93% 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.

AVB vs. DLR: A comparison of their Payout Ratio against their respective REIT - Residential and REIT - Office industry benchmarks.

Dividend at a Glance

SymbolAVBDLR
Dividend Yield (TTM)3.41%2.83%
Dividend Payout Ratio (TTM)84.58%392.93%

Valuation

Price-to-Earnings Ratio

AVB

25.14

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.

DLR

134.84

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.

AVB vs. DLR: A comparison of their P/E Ratio against their respective REIT - Residential and REIT - Office industry benchmarks.

Forward P/E to Growth Ratio

AVB

4.92

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.

DLR

6.07

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.

AVB vs. DLR: A comparison of their Forward PEG Ratio against their respective REIT - Residential and REIT - Office industry benchmarks.

Price-to-Sales Ratio

AVB

9.79

REIT - Residential Industry

Max
10.14
Q3
8.03
Median
7.51
Q1
5.76
Min
3.29

AVB’s P/S Ratio of 9.79 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.

DLR

10.32

REIT - Office Industry

Max
5.80
Q3
5.05
Median
3.85
Q1
2.27
Min
1.19

With a P/S Ratio of 10.32, DLR trades at a valuation that eclipses even the highest in the REIT - Office industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

AVB vs. DLR: A comparison of their P/S Ratio against their respective REIT - Residential and REIT - Office industry benchmarks.

Price-to-Book Ratio

AVB

2.42

REIT - Residential Industry

Max
4.04
Q3
3.00
Median
2.31
Q1
1.78
Min
0.81

AVB’s P/B Ratio of 2.42 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.

DLR

2.73

REIT - Office Industry

Max
2.09
Q3
1.38
Median
0.98
Q1
0.74
Min
0.14

At 2.73, DLR’s P/B Ratio is at an extreme premium to the REIT - Office 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.

AVB vs. DLR: A comparison of their P/B Ratio against their respective REIT - Residential and REIT - Office industry benchmarks.

Valuation at a Glance

SymbolAVBDLR
Price-to-Earnings Ratio (P/E, TTM)25.14134.84
Forward PEG Ratio (TTM)4.926.07
Price-to-Sales Ratio (P/S, TTM)9.7910.32
Price-to-Book Ratio (P/B, TTM)2.422.73
Price-to-Free Cash Flow Ratio (P/FCF, TTM)20.5635.17
EV-to-EBITDA (TTM)16.7127.63
EV-to-Sales (TTM)12.6413.16