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The differences between equity research analysts and finance analysts can be seen in a few details. Each job has different responsibilities and duties. It typically takes 2-4 years to become both an equity research analyst and a finance analyst. Additionally, an equity research analyst has an average salary of $119,540, which is higher than the $69,887 average annual salary of a finance analyst.
The top three skills for an equity research analyst include financial models, macro and securities. The most important skills for a finance analyst are financial analysis, financial models, and financial data.
| Equity Research Analyst | Finance Analyst | |
| Yearly salary | $119,540 | $69,887 |
| Hourly rate | $57.47 | $33.60 |
| Growth rate | 9% | 9% |
| Number of jobs | 85,974 | 138,600 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 70% | Bachelor's Degree, 76% |
| Average age | 40 | 40 |
| Years of experience | 4 | 4 |
An equity research analyst is responsible for analyzing stock and securities markets, generating reports and performance projections, and advising clients on the best options for clients' financial portfolios. Equity research analysts should have excellent knowledge of the current stock market trends, especially the availability of the securities to identify investments that would sell in public. They evaluate the clients' needs out of their investment interests and risk appetite. An equity research analyst must be highly-communicative and analytical, especially on responding to clients' inquiries and concerns and informing investment managers on the stock and securities available.
A finance analyst is responsible for evaluating a company's financial data and historical reports to assess investment opportunities and provide accurate financial statements in support of business strategies and company performance prediction. A financial analyst's duties also include suggesting recommendations to boost operations efficiency and grow revenues, researching the current market performance and economic trends to adjust budget goals as needed, and managing client portfolios. Finance analysts must have excellent critical and analytical thinking skills to identify the best actions for the company's profitability.
Equity research analysts and finance analysts have different pay scales, as shown below.
| Equity Research Analyst | Finance Analyst | |
| Average salary | $119,540 | $69,887 |
| Salary range | Between $78,000 And $182,000 | Between $46,000 And $104,000 |
| Highest paying City | San Francisco, CA | San Francisco, CA |
| Highest paying state | New Jersey | Connecticut |
| Best paying company | Simmons Energy | The Citadel |
| Best paying industry | Health Care | Finance |
There are a few differences between an equity research analyst and a finance analyst in terms of educational background:
| Equity Research Analyst | Finance Analyst | |
| Most common degree | Bachelor's Degree, 70% | Bachelor's Degree, 76% |
| Most common major | Finance | Business |
| Most common college | University of Pennsylvania | University of Pennsylvania |
Here are the differences between equity research analysts' and finance analysts' demographics:
| Equity Research Analyst | Finance Analyst | |
| Average age | 40 | 40 |
| Gender ratio | Male, 76.8% Female, 23.2% | Male, 56.2% Female, 43.8% |
| Race ratio | Black or African American, 5.6% Unknown, 4.5% Hispanic or Latino, 7.7% Asian, 14.1% White, 68.0% American Indian and Alaska Native, 0.1% | Black or African American, 5.6% Unknown, 4.5% Hispanic or Latino, 7.7% Asian, 14.1% White, 68.0% American Indian and Alaska Native, 0.1% |
| LGBT Percentage | 7% | 7% |