AVB vs. O: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVB and O, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
O’s market capitalization of 52.09 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 0.77 for O, both stocks show similar sensitivity to overall market movements.
| Symbol | AVB | O |
|---|---|---|
| Company Name | AvalonBay Communities, Inc. | Realty Income Corporation |
| Country | US | US |
| Sector | Real Estate | Real Estate |
| Industry | REIT - Residential | REIT - Retail |
| CEO | Benjamin W. Schall | Sumit Roy |
| Price | 202.57 USD | 57.68 USD |
| Market Cap | 28.84 billion USD | 52.09 billion USD |
| Beta | 0.87 | 0.77 |
| Exchange | NYSE | NYSE |
| IPO Date | March 11, 1994 | October 18, 1994 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AVB and O 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
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.
O
2.52%
REIT - Retail Industry
- Max
- 21.92%
- Q3
- 12.41%
- Median
- 7.21%
- Q1
- 1.78%
- Min
- -4.50%
Return on Equity is often not a primary performance indicator in the REIT - Retail industry.
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.
O
3.27%
REIT - Retail Industry
- Max
- 10.68%
- Q3
- 6.77%
- Median
- 5.71%
- Q1
- 3.03%
- Min
- 1.32%
Return on Invested Capital is often not a primary measure of capital efficiency in the REIT - Retail industry.
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.
O
18.15%
REIT - Retail Industry
- Max
- 45.09%
- Q3
- 28.32%
- Median
- 18.15%
- Q1
- 10.14%
- Min
- -12.26%
In the REIT - Retail industry, Net Profit Margin is often not the primary profitability metric.
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.
O
44.38%
REIT - Retail Industry
- Max
- 65.94%
- Q3
- 46.00%
- Median
- 35.03%
- Q1
- 24.10%
- Min
- 5.51%
In the REIT - Retail industry, Operating Profit Margin is often not the primary measure of operational efficiency.
Profitability at a Glance
| Symbol | AVB | O |
|---|---|---|
| Return on Equity (TTM) | 9.65% | 2.52% |
| Return on Assets (TTM) | 5.40% | 1.40% |
| Return on Invested Capital (TTM) | 4.55% | 3.27% |
| Net Profit Margin (TTM) | 38.86% | 18.15% |
| Operating Profit Margin (TTM) | 31.58% | 44.38% |
| Gross Profit Margin (TTM) | 63.13% | 92.67% |
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.
O
1.45
REIT - Retail Industry
- Max
- 3.39
- Q3
- 1.98
- Median
- 0.71
- Q1
- 0.45
- Min
- 0.13
For the REIT - Retail industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
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.
O
0.71
REIT - Retail Industry
- Max
- 1.99
- Q3
- 1.99
- Median
- 1.03
- Q1
- 0.77
- Min
- 0.07
Falling into the lower quartile for the REIT - Retail industry, O’s Debt-to-Equity Ratio of 0.71 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
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.
O
2.34
REIT - Retail Industry
- Max
- 4.88
- Q3
- 2.85
- Median
- 2.16
- Q1
- 1.45
- Min
- 0.24
O’s Interest Coverage Ratio of 2.34 is positioned comfortably within the norm for the REIT - Retail industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AVB | O |
|---|---|---|
| Current Ratio (TTM) | 0.22 | 1.45 |
| Quick Ratio (TTM) | 0.22 | 1.45 |
| Debt-to-Equity Ratio (TTM) | 0.71 | 0.71 |
| Debt-to-Asset Ratio (TTM) | 0.40 | 0.39 |
| Net Debt-to-EBITDA Ratio (TTM) | 3.78 | 6.34 |
| Interest Coverage Ratio (TTM) | 4.02 | 2.34 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVB and O. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
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.
O
5.98%
REIT - Retail Industry
- Max
- 10.82%
- Q3
- 5.31%
- Median
- 4.63%
- Q1
- 4.01%
- Min
- 0.00%
With a Dividend Yield of 5.98%, O offers a more attractive income stream than most of its peers in the REIT - Retail industry, signaling a strong commitment to shareholder returns.
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.
O
283.37%
REIT - Retail Industry
- Max
- 423.00%
- Q3
- 209.73%
- Median
- 147.41%
- Q1
- 110.19%
- Min
- 11.52%
O’s Dividend Payout Ratio of 283.37% 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.
Dividend at a Glance
| Symbol | AVB | O |
|---|---|---|
| Dividend Yield (TTM) | 3.41% | 5.98% |
| Dividend Payout Ratio (TTM) | 84.58% | 283.37% |
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.
O
52.57
REIT - Retail Industry
- Max
- 61.28
- Q3
- 51.98
- Median
- 26.77
- Q1
- 22.01
- Min
- 1.22
The P/E Ratio is often not the primary metric for valuation in the REIT - Retail industry.
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.
O
-0.53
REIT - Retail Industry
- Max
- 28.54
- Q3
- 16.17
- Median
- 7.98
- Q1
- 4.29
- Min
- 0.21
The Forward PEG Ratio is often not a primary valuation metric in the REIT - Retail industry.
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.
O
9.66
REIT - Retail Industry
- Max
- 12.50
- Q3
- 8.72
- Median
- 6.69
- Q1
- 5.52
- Min
- 1.52
O’s P/S Ratio of 9.66 is in the upper echelon for the REIT - Retail 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
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.
O
1.32
REIT - Retail Industry
- Max
- 2.71
- Q3
- 2.52
- Median
- 1.58
- Q1
- 1.33
- Min
- 0.99
O’s P/B Ratio of 1.32 is in the lower quartile for the REIT - Retail 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.
Valuation at a Glance
| Symbol | AVB | O |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 25.14 | 52.57 |
| Forward PEG Ratio (TTM) | 4.92 | -0.53 |
| Price-to-Sales Ratio (P/S, TTM) | 9.79 | 9.66 |
| Price-to-Book Ratio (P/B, TTM) | 2.42 | 1.32 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 20.56 | 14.54 |
| EV-to-EBITDA (TTM) | 16.71 | 18.47 |
| EV-to-Sales (TTM) | 12.64 | 14.71 |