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Investment analyst vs equity research analyst

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 vs equity research analyst overview

Investment AnalystEquity Research Analyst
Yearly salary$79,056$119,540
Hourly rate$38.01$57.47
Growth rate9%9%
Number of jobs63,00385,974
Job satisfaction5-
Most common degreeBachelor's Degree, 76%Bachelor's Degree, 70%
Average age4040
Years of experience44

What does an investment analyst do?

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.

What does an equity research analyst do?

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 analyst vs equity research analyst salary

Investment analysts and equity research analysts have different pay scales, as shown below.

Investment AnalystEquity Research Analyst
Average salary$79,056$119,540
Salary rangeBetween $44,000 And $140,000Between $78,000 And $182,000
Highest paying CitySan Francisco, CASan Francisco, CA
Highest paying stateNew YorkNew Jersey
Best paying companyThe CitadelSimmons Energy
Best paying industryTelecommunicationHealth Care

Differences between investment analyst and equity research analyst education

There are a few differences between an investment analyst and an equity research analyst in terms of educational background:

Investment AnalystEquity Research Analyst
Most common degreeBachelor's Degree, 76%Bachelor's Degree, 70%
Most common majorFinanceFinance
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Investment analyst vs equity research analyst demographics

Here are the differences between investment analysts' and equity research analysts' demographics:

Investment AnalystEquity Research Analyst
Average age4040
Gender ratioMale, 70.1% Female, 29.9%Male, 76.8% Female, 23.2%
Race ratioBlack 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 Percentage7%7%

Differences between investment analyst and equity research analyst duties and responsibilities

Investment analyst example responsibilities.

  • Update weekly liquidity stress report and utilize VBA and SQL to automate the process
  • Manage and update early engagement processes daily through SharePoint.
  • Manage trade executions and broker relationships for all portfolio positions across several banks, prime brokerage accounts and electronic commodities exchanges.
  • Perform financial analyses including discount cash flow, leverage buyout, public market comparable trading and precedent transaction-base valuations
  • Participate in the asset management valuation committee and provide management oversight to accounting, legal, and operations personnel.
  • Used JAVA to develop trading spread calculator.
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Equity research analyst example responsibilities.

  • Manage trade executions and broker relationships for all portfolio positions across several banks, prime brokerage accounts and electronic commodities exchanges.
  • Perform bottom-up fundamental analysis covering U.S. and European equities focuse on value.
  • Experience in client presentation of investment ideas and are responsible of generating detail PowerPoint slides.
  • Propose investment recommendations (buy/sell equity securities) base upon a combination of fundamental qualitative and quantitative analysis.
  • Support activities including industry analysis, company specific competitive analysis, risk assessment, management assessment and valuations like DCF analysis.
  • Develop analytical tools for the traders to analyse volatility and correlation using VBA and SQL.
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Investment analyst vs equity research analyst skills

Common investment analyst skills
  • Portfolio Management, 7%
  • Financial Statements, 6%
  • Strong Analytical, 6%
  • PowerPoint, 5%
  • Real Estate, 5%
  • Risk Management, 3%
Common equity research analyst skills
  • Financial Models, 14%
  • Macro, 7%
  • Securities, 4%
  • Equity Portfolio, 4%
  • Equities, 4%
  • Fundamental Analysis, 3%

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