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The differences between investment analysts and equity research 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 investment analyst and an equity research analyst. Additionally, an equity research analyst has an average salary of $119,540, which is higher than the $79,056 average annual salary of an investment analyst.
The top three skills for an investment analyst include portfolio management, financial statements and strong analytical. The most important skills for an equity research analyst are financial models, macro, and securities.
| Investment Analyst | Equity Research Analyst | |
| Yearly salary | $79,056 | $119,540 |
| Hourly rate | $38.01 | $57.47 |
| Growth rate | 9% | 9% |
| Number of jobs | 63,003 | 85,974 |
| Job satisfaction | 5 | - |
| Most common degree | Bachelor's Degree, 76% | Bachelor's Degree, 70% |
| Average age | 40 | 40 |
| Years of experience | 4 | 4 |
An Investment Analyst provides research and information to help traders, fund managers and stock brokers make decisions about investments. They are hired by companies, investment trusts, stock trading and brokerage firms, and insurance providers.
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.
Investment analysts and equity research analysts have different pay scales, as shown below.
| Investment Analyst | Equity Research Analyst | |
| Average salary | $79,056 | $119,540 |
| Salary range | Between $44,000 And $140,000 | Between $78,000 And $182,000 |
| Highest paying City | San Francisco, CA | San Francisco, CA |
| Highest paying state | New York | New Jersey |
| Best paying company | The Citadel | Simmons Energy |
| Best paying industry | Telecommunication | Health Care |
There are a few differences between an investment analyst and an equity research analyst in terms of educational background:
| Investment Analyst | Equity Research Analyst | |
| Most common degree | Bachelor's Degree, 76% | Bachelor's Degree, 70% |
| Most common major | Finance | Finance |
| Most common college | University of Pennsylvania | University of Pennsylvania |
Here are the differences between investment analysts' and equity research analysts' demographics:
| Investment Analyst | Equity Research Analyst | |
| Average age | 40 | 40 |
| Gender ratio | Male, 70.1% Female, 29.9% | Male, 76.8% Female, 23.2% |
| 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% |