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The differences between equity research analysts and investment bankers 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 an investment banker. Additionally, an investment banker has an average salary of $162,715, which is higher than the $119,540 average annual salary of an equity research analyst.
The top three skills for an equity research analyst include financial models, macro and securities. The most important skills for an investment banker are financial services, discounted cash flow, and capital markets.
| Equity Research Analyst | Investment Banker | |
| Yearly salary | $119,540 | $162,715 |
| Hourly rate | $57.47 | $78.23 |
| Growth rate | 9% | 10% |
| Number of jobs | 85,974 | 28,460 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 70% | Bachelor's Degree, 69% |
| Average age | 40 | 43 |
| 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.
An investment banker is responsible for selling and issuing securities and financial assets to the stock markets to generate money and raise capital for organizations and financial institutions. Investment bankers also work with private clients to advise them of investment options and financial transactions according to the market's condition and clients' interests. They handle the clients' investment portfolios and create propositions for acquisitions and company mergers. An investment banker must have excellent knowledge of the financial and stock industry, as well as having excellent analytical skills to review statistical data and determine the best financial strategies.
Equity research analysts and investment bankers have different pay scales, as shown below.
| Equity Research Analyst | Investment Banker | |
| Average salary | $119,540 | $162,715 |
| Salary range | Between $78,000 And $182,000 | Between $95,000 And $276,000 |
| Highest paying City | San Francisco, CA | Boston, MA |
| Highest paying state | New Jersey | Alaska |
| Best paying company | Simmons Energy | Citi |
| Best paying industry | Health Care | Real Estate |
There are a few differences between an equity research analyst and an investment banker in terms of educational background:
| Equity Research Analyst | Investment Banker | |
| Most common degree | Bachelor's Degree, 70% | Bachelor's Degree, 69% |
| Most common major | Finance | Business |
| Most common college | University of Pennsylvania | University of Pennsylvania |
Here are the differences between equity research analysts' and investment bankers' demographics:
| Equity Research Analyst | Investment Banker | |
| Average age | 40 | 43 |
| Gender ratio | Male, 76.8% Female, 23.2% | Male, 76.2% Female, 23.8% |
| 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, 5.5% Unknown, 4.1% Hispanic or Latino, 11.5% Asian, 12.4% White, 66.2% American Indian and Alaska Native, 0.2% |
| LGBT Percentage | 7% | 6% |