ARE (Alexandria Real Estate Equities Inc) vs S&P 500 Comparison

ARE

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

Select Stock to Compare

ARE

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

ARE

S&P 500

Add Stock

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

Select Stock to Compare

S&P 500

ARE

BXP

VNO

CDP

8951

Add Stock

1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

Select Stock to Compare

Alexandria Real Estate Equities Inc
Glance View

Economic Moat

None

Market Cap

16.8B USD

Industry

Real Estate

In the bustling hub of urban life sciences and technology campuses, Alexandria Real Estate Equities Inc. has carved a niche that integrates real estate acumen with a deep understanding of the life sciences industry. Born in 1994, it emerged as a visionary undertaking, keenly focused on serving the unique needs of life sciences enterprises by providing strategically located and highly sophisticated laboratory and office spaces. Headquartered in Pasadena, California, Alexandria has built a reputation not just as a landlord, but as a partner to a broad spectrum of innovative tenants ranging from biotech startups to global pharmaceutical giants. The company’s properties are primarily located in top innovation clusters like Greater Boston, San Francisco Bay Area, New York City, and San Diego, ensuring close proximity to leading research institutions and talent pools. Alexandria’s business model thrives on a keen strategy of acquiring, developing, and operating properties in these sought-after corridors, where science and technology entrepreneurship flourishes. The company generates revenue through leasing its carefully curated real estate portfolio, with rental income forming the backbone of its financial success. Each property is designed or upgraded to meet the demanding requirements of its tenants, often including state-of-the-art laboratory facilities and amenities that foster collaboration and innovation. This not only enables Alexandria to command premium lease rates but also helps maintain high occupancy levels. The uniqueness of its properties and strategic presence in dynamic markets provide Alexandria with a strong competitive edge, underpinning its growth and establishing its stature in the specialized domain of life sciences real estate investment trusts (REITs).

View ARE Analysis

ARE Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

	Franklin Covey Co NYSE:FC	35.3 USD
	Mohawk Industries Inc NYSE:MHK	118.28 USD 0.84%
	Ardmore Shipping Corp NYSE:ASC	12.56 USD -1.64%
	ASGN Inc NYSE:ASGN	86.92 USD
	Skyworks Solutions Inc NASDAQ:SWKS	92.63 USD -0.03%
	Weatherford International PLC NASDAQ:WFRD	72.13 USD -3.57%

	Johnson & Johnson NYSE:JNJ	142.27 USD
	Bank of America Corp NYSE:BAC	46.21 USD
	Mastercard Inc NYSE:MA	516.4 USD 0.98%
	Salesforce Inc NYSE:CRM	326.9 USD
	Abbvie Inc NYSE:ABBV	178.5 USD -0.57%
	Home Depot Inc NYSE:HD	387.2 USD

	Arista Networks Inc NYSE:ANET	115.51 USD
	Visa Inc NYSE:V	312.6 USD
	Texas Pacific Land Corp NYSE:TPL	1 275.94 USD 1.4%
	KLA Corp NASDAQ:KLAC	686.2 USD -0.45%
	Manhattan Associates Inc NASDAQ:MANH	272.49 USD 1.6%
	Pinduoduo Inc NASDAQ:PDD	100.32 USD

	Salesforce Inc NYSE:CRM	326.9 USD
	ServiceNow Inc NYSE:NOW	1 049.08 USD -0.48%
	EOG Resources Inc NYSE:EOG	128.46 USD 0.71%
	Copart Inc NASDAQ:CPRT	56.78 USD 0.96%
	Applied Materials Inc NASDAQ:AMAT	176.99 USD -0.47%
	Synopsys Inc NASDAQ:SNPS	502 USD 2.95%

	Johnson & Johnson NYSE:JNJ	142.27 USD
	Berkshire Hathaway Inc NYSE:BRK.A	677 925 USD
	Bank of America Corp NYSE:BAC	46.21 USD
	Mastercard Inc NYSE:MA	516.4 USD 0.98%
	UnitedHealth Group Inc NYSE:UNH	524.52 USD
	Exxon Mobil Corp NYSE:XOM	106.93 USD

ARE

vs

S&P 500

Stocks Performance
ARE vs S&P 500

Performance Gap
ARE vs S&P 500

Performance By Year
ARE vs S&P 500

Competitors Performance
Alexandria Real Estate Equities Inc vs Peers

Alexandria Real Estate Equities Inc
Glance View

Company

Help

Tools

Stocks

US	Boston Properties Inc NYSE:BXP	Add
US	Vornado Realty Trust NYSE:VNO	Add
US	COPT Defense Properties NYSE:CDP	Add
JP	Nippon Building Fund Inc TSE:8951	Add
FR	Covivio SA PAR:COV	Add
JP	Japan Real Estate Investment Corp TSE:8952	Add
US	Cousins Properties Inc NYSE:CUZ	Add
AU	Dexus ASX:DXS	Add
US	Kilroy Realty Corp NYSE:KRC	Add
US	SL Green Realty Corp NYSE:SLG	Add

US	Boston Properties Inc NYSE:BXP	Select
US	Vornado Realty Trust NYSE:VNO	Select
US	COPT Defense Properties NYSE:CDP	Select
JP	Nippon Building Fund Inc TSE:8951	Select
FR	Covivio SA PAR:COV	Select
JP	Japan Real Estate Investment Corp TSE:8952	Select
US	Cousins Properties Inc NYSE:CUZ	Select
AU	Dexus ASX:DXS	Select
US	Kilroy Realty Corp NYSE:KRC	Select
US	SL Green Realty Corp NYSE:SLG	Select

US	G	GE Vernova LLC NYSE:GEV	Add
NL	N	Nepi Rockcastle NV JSE:NRP	Add
US		Schlumberger NV NYSE:SLB	Add
US	B	Baker Hughes Co NASDAQ:BKR	Add
ID		Amman Mineral Internasional Tbk PT IDX:AMMN	Add
US	R	Reddit Inc NYSE:RDDT	Add
CH	G	Galderma Group AG SIX:GALD	Add
US		Halliburton Co NYSE:HAL	Add
LU		Tenaris SA MIL:TEN	Add
IN		Jio Financial Services Ltd NSE:JIOFIN	Add

ARE vs S&P 500

Stocks Performance ARE vs S&P 500

Performance Gap ARE vs S&P 500

Performance By Year ARE vs S&P 500

Competitors Performance Alexandria Real Estate Equities Inc vs Peers

Alexandria Real Estate Equities Inc Glance View

Company

Help

Tools

Stocks

ARE

vs

S&P 500

Stocks Performance
ARE vs S&P 500

Performance Gap
ARE vs S&P 500

Performance By Year
ARE vs S&P 500

Competitors Performance
Alexandria Real Estate Equities Inc vs Peers

Alexandria Real Estate Equities Inc
Glance View