REIT - Residential
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ESS vs CPT
Revenue, margins, valuation, and 5-year total return — side by side.
REIT - Residential
ESS vs CPT — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | REIT - Residential | REIT - Residential |
| Market Cap | $17.20B | $10.97B |
| Revenue (TTM) | $1.91B | $1.18B |
| Net Income (TTM) | $576M | $388M |
| Gross Margin | 69.4% | 61.3% |
| Operating Margin | 38.4% | 18.1% |
| Forward P/E | 46.5x | 68.4x |
| Total Debt | $6.90B | $3.90B |
| Cash & Equiv. | $86M | $25M |
ESS vs CPT — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Essex Property Trus… (ESS) | 100 | 109.9 | +9.9% |
| Camden Property Tru… (CPT) | 100 | 114.4 | +14.4% |
Price return only. Dividends and distributions are not included.
Quick Verdict: ESS vs CPT
Each card shows where this stock fits in a portfolio — not just who wins on paper.
ESS carries the broadest edge in this set and is the clearest fit for growth exposure.
- Rev growth 7.1%, EPS growth -9.8%, 3Y rev CAGR 5.8%
- 7.1% FFO/revenue growth vs CPT's 1.9%
- Lower P/E (46.5x vs 68.4x)
CPT is the clearest fit if your priority is income & stability and long-term compounding.
- Dividend streak 4 yrs, beta 0.36, yield 4.1%
- 71.7% 10Y total return vs ESS's 53.4%
- Lower volatility, beta 0.36, Low D/E 87.9%, current ratio 0.10x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 7.1% FFO/revenue growth vs CPT's 1.9% | |
| Value | Lower P/E (46.5x vs 68.4x) | |
| Quality / Margins | 32.8% margin vs ESS's 30.2% | |
| Stability / Safety | Beta 0.36 vs ESS's 0.43, lower leverage | |
| Dividends | 4.1% yield, 4-year raise streak, vs ESS's 3.8% | |
| Momentum (1Y) | -3.9% vs CPT's -8.6% | |
| Efficiency (ROA) | 4.4% ROA vs CPT's 4.3%, ROIC 5.0% vs 2.6% |
ESS vs CPT — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
ESS vs CPT — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
Evenly matched — ESS and CPT each lead in 3 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
ESS is the larger business by revenue, generating $1.9B annually — 1.6x CPT's $1.2B. Profitability is closely matched — net margins range from 32.8% (CPT) to 30.2% (ESS). On growth, ESS holds the edge at +1.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $1.9B | $1.2B |
| EBITDAEarnings before interest/tax | $1.3B | $867M |
| Net IncomeAfter-tax profit | $576M | $388M |
| Free Cash FlowCash after capex | $962M | $714M |
| Gross MarginGross profit ÷ Revenue | +69.4% | +61.3% |
| Operating MarginEBIT ÷ Revenue | +38.4% | +18.1% |
| Net MarginNet income ÷ Revenue | +30.2% | +32.8% |
| FCF MarginFCF ÷ Revenue | +50.5% | +60.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +1.5% | -100.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -47.8% | +11.1% |
Valuation Metrics
CPT leads this category, winning 4 of 7 comparable metrics.
Valuation Metrics
At 25.6x trailing earnings, ESS trades at a 13% valuation discount to CPT's 29.6x P/E. Adjusting for growth (PEG ratio), CPT offers better value at 1.27x vs ESS's 6.92x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | ||
|---|---|---|
| Market CapShares × price | $17.2B | $11.0B |
| Enterprise ValueMkt cap + debt − cash | $24.0B | $14.8B |
| Trailing P/EPrice ÷ TTM EPS | 25.62x | 29.59x |
| Forward P/EPrice ÷ next-FY EPS est. | 46.54x | 68.38x |
| PEG RatioP/E ÷ EPS growth rate | 6.92x | 1.27x |
| EV / EBITDAEnterprise value multiple | 16.66x | 16.50x |
| Price / SalesMarket cap ÷ Revenue | 9.05x | 6.97x |
| Price / BookPrice ÷ Book value/share | 3.00x | 2.56x |
| Price / FCFMarket cap ÷ FCF | 16.00x | 28.40x |
Profitability & Efficiency
CPT leads this category, winning 5 of 9 comparable metrics.
Profitability & Efficiency
ESS delivers a 10.0% return on equity — every $100 of shareholder capital generates $10 in annual profit, vs $9 for CPT. CPT carries lower financial leverage with a 0.88x debt-to-equity ratio, signaling a more conservative balance sheet compared to ESS's 1.20x. On the Piotroski fundamental quality scale (0–9), CPT scores 7/9 vs ESS's 6/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +10.0% | +8.7% |
| ROA (TTM)Return on assets | +4.4% | +4.3% |
| ROICReturn on invested capital | +5.0% | +2.6% |
| ROCEReturn on capital employed | +6.6% | +3.4% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 1.20x | 0.88x |
| Net DebtTotal debt minus cash | $6.8B | $3.9B |
| Cash & Equiv.Liquid assets | $86M | $25M |
| Total DebtShort + long-term debt | $6.9B | $3.9B |
| Interest CoverageEBIT ÷ Interest expense | 3.71x | 3.89x |
Total Returns (Dividends Reinvested)
ESS leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in ESS five years ago would be worth $11,167 today (with dividends reinvested), compared to $10,538 for CPT. Over the past 12 months, ESS leads with a -3.9% total return vs CPT's -8.6%. The 3-year compound annual growth rate (CAGR) favors ESS at 10.4% vs CPT's 2.0% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +5.8% | -4.0% |
| 1-Year ReturnPast 12 months | -3.9% | -8.6% |
| 3-Year ReturnCumulative with dividends | +34.7% | +6.1% |
| 5-Year ReturnCumulative with dividends | +11.7% | +5.4% |
| 10-Year ReturnCumulative with dividends | +53.4% | +71.7% |
| CAGR (3Y)Annualised 3-year return | +10.4% | +2.0% |
Risk & Volatility
Evenly matched — ESS and CPT each lead in 1 of 2 comparable metrics.
Risk & Volatility
CPT is the less volatile stock with a 0.36 beta — it tends to amplify market swings less than ESS's 0.43 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ESS currently trades 90.7% from its 52-week high vs CPT's 86.3% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.43x | 0.36x |
| 52-Week HighHighest price in past year | $294.09 | $121.33 |
| 52-Week LowLowest price in past year | $238.47 | $96.53 |
| % of 52W HighCurrent price vs 52-week peak | +90.7% | +86.3% |
| RSI (14)Momentum oscillator 0–100 | 63.6 | 55.9 |
| Avg Volume (50D)Average daily shares traded | 435K | 986K |
Analyst Outlook
Evenly matched — ESS and CPT each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates ESS as "Hold" and CPT as "Hold". Consensus price targets imply 7.4% upside for CPT (target: $112) vs 4.7% for ESS (target: $279). For income investors, CPT offers the higher dividend yield at 4.06% vs ESS's 3.80%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $279.20 | $112.48 |
| # AnalystsCovering analysts | 46 | 41 |
| Dividend YieldAnnual dividend ÷ price | +3.8% | +4.1% |
| Dividend StreakConsecutive years of raises | 11 | 4 |
| Dividend / ShareAnnual DPS | $10.15 | $4.25 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.0% | +2.5% |
CPT leads in 2 of 6 categories (Valuation Metrics, Profitability & Efficiency). ESS leads in 1 (Total Returns). 3 tied.
ESS vs CPT: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is ESS or CPT a better buy right now?
For growth investors, Essex Property Trust, Inc.
(ESS) is the stronger pick with 7. 1% revenue growth year-over-year, versus 1. 9% for Camden Property Trust (CPT). Essex Property Trust, Inc. (ESS) offers the better valuation at 25. 6x trailing P/E (46. 5x forward), making it the more compelling value choice. Analysts rate Essex Property Trust, Inc. (ESS) a "Hold" — based on 46 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — ESS or CPT?
On trailing P/E, Essex Property Trust, Inc.
(ESS) is the cheapest at 25. 6x versus Camden Property Trust at 29. 6x. On forward P/E, Essex Property Trust, Inc. is actually cheaper at 46. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Camden Property Trust wins at 2. 93x versus Essex Property Trust, Inc. 's 12. 57x.
03Which is the better long-term investment — ESS or CPT?
Over the past 5 years, Essex Property Trust, Inc.
(ESS) delivered a total return of +11. 7%, compared to +5. 4% for Camden Property Trust (CPT). Over 10 years, the gap is even starker: CPT returned +71. 7% versus ESS's +53. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — ESS or CPT?
By beta (market sensitivity over 5 years), Camden Property Trust (CPT) is the lower-risk stock at 0.
36β versus Essex Property Trust, Inc. 's 0. 43β — meaning ESS is approximately 19% more volatile than CPT relative to the S&P 500. On balance sheet safety, Camden Property Trust (CPT) carries a lower debt/equity ratio of 88% versus 120% for Essex Property Trust, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — ESS or CPT?
By revenue growth (latest reported year), Essex Property Trust, Inc.
(ESS) is pulling ahead at 7. 1% versus 1. 9% for Camden Property Trust (CPT). On earnings-per-share growth, the picture is similar: Camden Property Trust grew EPS 136. 0% year-over-year, compared to -9. 8% for Essex Property Trust, Inc.. Over a 3-year CAGR, ESS leads at 5. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — ESS or CPT?
Essex Property Trust, Inc.
(ESS) is the more profitable company, earning 35. 4% net margin versus 24. 4% for Camden Property Trust — meaning it keeps 35. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ESS leads at 43. 9% versus 18. 4% for CPT. At the gross margin level — before operating expenses — ESS leads at 68. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is ESS or CPT more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.
By this metric, Camden Property Trust (CPT) is the more undervalued stock at a PEG of 2. 93x versus Essex Property Trust, Inc. 's 12. 57x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Essex Property Trust, Inc. (ESS) trades at 46. 5x forward P/E versus 68. 4x for Camden Property Trust — 21. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CPT: 7. 4% to $112. 48.
08Which pays a better dividend — ESS or CPT?
All stocks in this comparison pay dividends.
Camden Property Trust (CPT) offers the highest yield at 4. 1%, versus 3. 8% for Essex Property Trust, Inc. (ESS).
09Is ESS or CPT better for a retirement portfolio?
For long-horizon retirement investors, Camden Property Trust (CPT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
36), 4. 1% yield). Both have compounded well over 10 years (CPT: +71. 7%, ESS: +53. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between ESS and CPT?
Both stocks operate in the Real Estate sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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