What does an equity analyst do?
An equity analyst's role is to help clients navigate through stocks and bonds using their expertise. In a company setting, their responsibilities revolve around performing extensive research and analysis on areas such as the stock market, coordinating with different departments to gather necessary data, identifying new opportunities, preparing and analyzing the company's financial records, and creating forecast models. Furthermore, as an equity analyst, it is essential to make recommendations in adherence to the company's policies and regulations, including its vision and mission.
Equity analyst responsibilities
Here are examples of responsibilities from real equity analyst resumes:
- Manage trade executions and broker relationships for all portfolio positions across several banks, prime brokerage accounts and electronic commodities exchanges.
- Conduct fundamental analysis of securities own or being consider for inclusion in domestic equity mutual fund.
- Conduct analysis on prospective names in buy universe using DCF, comps, historical, and extensive fundamental scrutiny.
- Conduct fundamental and technical analysis on diversify pool of global equities across all sectors.
- Conduct bottoms up fundamental and technical analysis of equity securities to produce buy/sell/hold recommendations for various portfolios.
- Perform comprehensive analysis of equities, formulate and utilize fundamental and technical analysis for various equity trading strategies and execution.
- Create automated spreadsheets incorporating macros and vlookup commands that allow leadership to independently perform routine financial research with minimal effort.
Equity analyst skills and personality traits
We calculated that 7% of Equity Analysts are proficient in Financial Models, Equities, and Discounted Cash Flow. They’re also known for soft skills such as Analytical skills, Communication skills, and Computer skills.
We break down the percentage of Equity Analysts that have these skills listed on their resume here:
- Financial Models, 7%
Created financial models by forecasting business trends and supporting valuation by incorporating earnings power, cash flow analysis and asset-based metrics.
- Equities, 6%
Conducted fundamental and segment analysis for North American equities across the technology and retail sector.
- Discounted Cash Flow, 6%
Performed discounted cash flow analysis, fundamental multiple analysis, evaluation of performance relative to comparable firms, and profit assessment.
- Securities, 5%
Conducted bottoms up fundamental and technical analysis of equity securities to produce buy/sell/hold recommendations for various portfolios.
- Portfolio Companies, 4%
Assisted portfolio managers in the oversight of portfolio companies and supported executive teams and country managers in business plan execution.
- Real Estate, 4%
Gathered and evaluated economic, demographic, and real estate market data for potential acquisitions.
Most equity analysts use their skills in "financial models," "equities," and "discounted cash flow" to do their jobs. You can find more detail on essential equity analyst responsibilities here:
Analytical skills. The most essential soft skill for an equity analyst to carry out their responsibilities is analytical skills. This skill is important for the role because "financial analysts must evaluate a range of information in finding profitable investments." Additionally, an equity analyst resume shows how their duties depend on analytical skills: "analyzed and reviewed executive investment theses and collaborated with senior analysts in market research. "
Communication skills. Many equity analyst duties rely on communication skills. "financial analysts must be able to clearly explain their recommendations to clients.," so an equity analyst will need this skill often in their role. This resume example is just one of many ways equity analyst responsibilities rely on communication skills: "maintain fluid communication with hedge fund managers and individual investors to ensure client due diligence. "
Computer skills. This is an important skill for equity analysts to perform their duties. For an example of how equity analyst responsibilities depend on this skill, consider that "financial analysts must be adept at using software to analyze financial data and trends, create portfolios, and make forecasts." This excerpt from a resume also shows how vital it is to everyday roles and responsibilities of an equity analyst: "conducted equity research for domestic u.s. stocks in the industries of computer electronics, sports apparel, and heavy machinery. ".
Detail oriented. For certain equity analyst responsibilities to be completed, the job requires competence in "detail oriented." The day-to-day duties of an equity analyst rely on this skill, as "financial analysts must pay attention when reviewing a possible investment, as even small issues may have large implications for its health." For example, this snippet was taken directly from a resume about how this skill applies to what equity analysts do: "complete detailed due diligence on managers being considered, especially with regard to risk and oversight controls. "
Math skills. Another crucial skill for an equity analyst to carry out their responsibilities is "math skills." A big part of what equity analysts relies on this skill, since "financial analysts use mathematics to estimate the value of financial securities." How this skill relates to equity analyst duties can be seen in an example from an equity analyst resume snippet: "recommended equities for portfolios utilizing quantitative and fundamental analysis. "
The three companies that hire the most equity analysts are:
- Pwc55 equity analysts jobs
- The PNC Financial Services Group16 equity analysts jobs
- Morgan Stanley7 equity analysts jobs
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Compare different equity analysts
Equity analyst vs. Investment advisor
An investment advisor is responsible for managing the clients' financial portfolios, advising them of investment options according to their financial goals and objectives, and their ability to handle risks. Investment advisors should have excellent knowledge of the investment policies, providing the clients with the best financial strategies according to their interests. They also determine their expenses, income, and credit scores to identify a comprehensive financial plan. An investment advisor helps the clients with cash management techniques, as well as conducting data analysis on financial market projections.
There are some key differences in the responsibilities of each position. For example, equity analyst responsibilities require skills like "financial models," "discounted cash flow," "portfolio companies," and "powerpoint." Meanwhile a typical investment advisor has skills in areas such as "exceptional client," "risk management," "client relationships," and "health insurance." This difference in skills reveals the differences in what each career does.
Investment advisors tend to make the most money working in the telecommunication industry, where they earn an average salary of $127,062. In contrast, equity analysts make the biggest average salary, $125,442, in the finance industry.On average, investment advisors reach lower levels of education than equity analysts. Investment advisors are 8.6% less likely to earn a Master's Degree and 0.4% more likely to graduate with a Doctoral Degree.Equity analyst vs. Investment associate
An investment associate's primary role is to review a company's financial data, recommend investment strategies, oversee the distribution of stocks, and calculate possible risks for business mergers. They also serve as a mediator during agreements between companies during takeovers, monitors stock inventory, sell stocks, and details all financial transactions. In the course of these responsibilities, an investment associate provides administrative support and timely response to client requests as needed, acting as an additional point of communication for clients.
In addition to the difference in salary, there are some other key differences worth noting. For example, equity analyst responsibilities are more likely to require skills like "fundamental analysis," "investment process," "fundamental research," and "healthcare." Meanwhile, an investment associate has duties that require skills in areas such as "customer service," "client service," "client relationships," and "wealth management." These differences highlight just how different the day-to-day in each role looks.
Investment associates may earn a higher salary than equity analysts, but investment associates earn the most pay in the technology industry with an average salary of $117,651. On the other hand, equity analysts receive higher pay in the finance industry, where they earn an average salary of $125,442.In general, investment associates achieve lower levels of education than equity analysts. They're 7.9% less likely to obtain a Master's Degree while being 0.4% more likely to earn a Doctoral Degree.Equity analyst vs. Finance analyst-operations finance
Financial analysts are professionals who are in charge of the financial operations of businesses. The analysts analyze results, monitor variances, determine trends, and suggest management-related actions to improve corporate finances. They reconcile transactions through data comparison and correction. It is their duty to maintain the database through data input, verification, and backup. They produce presentations restating fiscal information used by supervisors, administrators, and others. This position requires skills in financial reporting, management, communications skills, and accounting qualification.
There are many key differences between these two careers, including some of the skills required to perform responsibilities within each role. For example, an equity analyst is likely to be skilled in "securities," "portfolio companies," "real estate," and "powerpoint," while a typical finance analyst-operations finance is skilled in "financial analysis," "financial operations," "data analysis," and "customer service."
Finances analyst-operations finances make a very good living in the pharmaceutical industry with an average annual salary of $93,042. On the other hand, equity analysts are paid the highest salary in the finance industry, with average annual pay of $125,442.Most finances analyst-operations finances achieve a lower degree level compared to equity analysts. For example, they're 7.2% less likely to graduate with a Master's Degree, and 0.4% less likely to earn a Doctoral Degree.Equity analyst vs. Financial analyst internship
A financial analyst intern is responsible for supporting an organization with financial activities and tasks. Typical duties and responsibilities may include creating and analyzing financial reports, preparing financial statements, and helping with audits. You may be asked to perform some administrative tasks while observing the various aspects of portfolio management, accounting, and financial reporting. As a financial analyst intern, you are expected to conduct competitive analysis and market research and help prepare reports and recommendations on due diligence. You are also expected to join in on meetings and calls with company prospects.
Even though a few skill sets overlap between equity analysts and financial analyst interns, there are some differences that are important to note. For one, an equity analyst might have more use for skills like "securities," "portfolio companies," "powerpoint," and "buy side." Meanwhile, some responsibilities of financial analyst interns require skills like "data analysis," "r," "pivot tables," and "journal entries. "
The average resume of financial analyst interns showed that they earn lower levels of education compared to equity analysts. So much so that theyacirc;euro;trade;re 5.6% less likely to earn a Master's Degree and less likely to earn a Doctoral Degree by 0.2%.Types of equity analyst
Updated January 8, 2025
