AMH vs. ESS

Last updated Jun 3, 2026

AMH (American Homes 4 Rent) and ESS (Essex Property Trust, Inc.) are both stocks. Both operate in the REIT - Residential industry within the Real Estate sector. Over the past 10 years, AMH returned 7.65%/yr vs 6.13%/yr for ESS. A 0.59 correlation means they provide meaningful diversification when combined.

Performance

AMH vs. ESS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Homes 4 Rent (AMH) and Essex Property Trust, Inc. (ESS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AMH achieves a 1.10% return, which is significantly lower than ESS's 8.28% return. Over the past 10 years, AMH has outperformed ESS with an annualized return of 7.65%, while ESS has yielded a comparatively lower 6.13% annualized return.

AMH

• 1D: -0.62%
• 1M: 0.41%
• YTD: 1.10%
• 6M: 2.92%
• 1Y: -11.98%
• 3Y*: 0.31%
• 5Y*: -0.94%
• 10Y*: 7.65%

ESS

• 1D: 0.23%
• 1M: 5.40%
• YTD: 8.28%
• 6M: 8.67%
• 1Y: 1.42%
• 3Y*: 10.84%
• 5Y*: 1.52%
• 10Y*: 6.13%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AMH vs. ESS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AMH American Homes 4 Rent	1.10%	-11.12%	6.99%	22.44%	-29.46%	46.91%	15.28%	33.13%	-8.23%	5.05%
ESS Essex Property Trust, Inc.	8.28%	-4.98%	18.36%	21.97%	-37.76%	52.40%	-18.09%	25.92%	4.83%	6.82%

Correlation

The correlation between AMH and ESS is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.72
Correlation (10Y) Calculated over the trailing 10-year period	0.63
Correlation (All Time) Calculated using the full available price history since Aug 2, 2013	0.59

The correlation between AMH and ESS shifts across timeframes, from 0.59 (all time) to 0.72 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

EPS AMH : $1.26 ESS : $9.59
PE Ratio AMH : 25.36 ESS : 28.94
PEG Ratio AMH : 0.79 ESS : 2.03
PS Ratio AMH : 8.49 ESS : 7.03
Total Revenue (TTM) AMH : $1.40B ESS : $1.91B
Gross Profit (TTM) AMH : $547.38M ESS : $1.32B
EBITDA (TTM) AMH : $1.03B ESS : $1.44B

Return for Risk

AMH vs. ESS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AMH

AMH Risk / Return Rank: 18
AMH Sharpe Ratio Rank: 14
AMH Sortino Ratio Rank: 14
AMH Omega Ratio Rank: 15
AMH Calmar Ratio Rank: 24
AMH Martin Ratio Rank: 23

ESS

ESS Risk / Return Rank: 39
ESS Sharpe Ratio Rank: 43
ESS Sortino Ratio Rank: 35
ESS Omega Ratio Rank: 34
ESS Calmar Ratio Rank: 42
ESS Martin Ratio Rank: 42

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AMH vs. ESS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Homes 4 Rent (AMH) and Essex Property Trust, Inc. (ESS). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	AMH	ESS	Difference
Sharpe ratio Return per unit of total volatility	-0.62	0.07	-0.69
Sortino ratio Return per unit of downside risk	-0.77	0.23	-1.00
Omega ratio Gain probability vs. loss probability	0.91	1.03	-0.12
Calmar ratio Return relative to maximum drawdown	-0.48	0.10	-0.58
Martin ratio Return relative to average drawdown	-0.88	0.17	-1.06
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AMH vs. ESS - Sharpe Ratio Comparison

The current AMH Sharpe Ratio is -0.62, which is lower than the ESS Sharpe Ratio of 0.07. The chart below compares the historical Sharpe Ratios of AMH and ESS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AMH	ESS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.62	0.07	-0.69
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.04	0.06	-0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.33	0.24	+0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.33	0.50	-0.17

Drawdowns

AMH vs. ESS - Drawdown Comparison

The maximum AMH drawdown since its inception was -38.40%, smaller than the maximum ESS drawdown of -62.67%. Use the drawdown chart below to compare losses from any high point for AMH and ESS.

Drawdown Indicators

	AMH	ESS	Difference
Max Drawdown Largest peak-to-trough decline	-38.40%	-62.67%	+24.27%
Max Drawdown (1Y) Largest decline over 1 year	-23.79%	-16.49%	-7.30%
Max Drawdown (3Y) Largest decline over 3 years	-29.73%	-20.77%	-8.96%
Max Drawdown (5Y) Largest decline over 5 years	-31.84%	-43.87%	+12.03%
Max Drawdown (10Y) Largest decline over 10 years	-38.40%	-44.84%	+6.44%
Current Drawdown Current decline from peak	-17.66%	-9.93%	-7.73%
Average Drawdown Average peak-to-trough decline	-9.51%	-10.86%	+1.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	13.51%	9.80%	+3.71%

Volatility

AMH vs. ESS - Volatility Comparison

American Homes 4 Rent (AMH) has a higher volatility of 5.81% compared to Essex Property Trust, Inc. (ESS) at 4.48%. This indicates that AMH's price experiences larger fluctuations and is considered to be riskier than ESS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AMH	ESS	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.81%	4.48%	+1.33%
Volatility (6M) Calculated over the trailing 6-month period	15.42%	14.07%	+1.35%
Volatility (1Y) Calculated over the trailing 1-year period	19.50%	20.76%	-1.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.32%	23.70%	-1.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.60%	25.81%	-2.21%

Dividends

AMH vs. ESS - Dividend Comparison

AMH's dividend yield for the trailing twelve months is around 3.83%, more than ESS's 3.71% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AMH American Homes 4 Rent	3.83%	3.74%	2.78%	2.45%	2.39%	0.92%	0.67%	0.76%	1.01%	0.92%	0.95%	1.20%
ESS Essex Property Trust, Inc.	3.71%	3.88%	2.57%	3.73%	4.15%	2.37%	3.50%	2.59%	3.03%	2.90%	2.75%	2.41%

Financials

Frequently Asked Questions

Can I hold both AMH and ESS in my portfolio?

AMH and ESS have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AMH or ESS?

AMH has higher volatility (5.81%) compared to ESS (4.48%). In terms of maximum drawdown, AMH dropped -38.40% vs ESS's -62.67%.

Which has better risk-adjusted returns?

ESS currently has the higher Sharpe Ratio (0.07 vs -0.62), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.