MBA Job Profile: Equity Research Analyst
Many MBA students interested in a finance career think of working in corporate finance, commercial banking, financial planning, or investment banking. Rarely do they consider the more mathematically-inclined, analytical options. However, a career in equity research can be a top career choice for many finance students. It’s a valid career option for someone who is less interested in sales and communication and more interested in research, analysis, and strategy.
So, what exactly is an equity research analyst?
An equity research analyst helps analyze stocks so that portfolio managers can make better-informed investment decisions. They research companies, look at share prices, and issue recommendations on investments and M&A deals. Sometimes considered the un-glamorous and lower-paid cousin to investment banking, equity researchers are great problem solvers tasked with developing screening tools and investment models to help manage portfolios.
To be a great equity research analyst, you’ll need to be able to:
- Identify patterns in the marketplace.
- Interpret data to understand and predict a security’s behavioral outlook.
- Quantitatively analyze a stock’s statistical data compared to recent market activity.
- Create algorithms that identify stock investment opportunities.
- Understand the differences between international markets to cross-compare domestic and foreign stocks.
Equity research analysts begin their careers with a lot of financial modeling and analysis of a specific sector or group of companies. There is typically limited buy-side client interaction or interaction with top management. However, over time, your responsibilities will evolve to more report writing and formulating investment opinions and theses.
Equity Research Analyst Work/Life Balance
While an equity research analyst works long hours—typically 12-hour days—that’s nothing compared to investment banking. You may have busy seasons and times, but for the most part, your job will be relatively calm and offer some work-life balance.
Equity Research Analyst Career Advancement
However, the equity research analyst career path is less defined. You’ll generally start as an analyst for a few years before moving up to senior analyst, vice president, and then director of research. But that can be a slow process because you’re not considered as essential to the bottom line as the firm’s investment bankers.
Equity Research Analyst Salary Expectations
According to Payscale, the average equity research analyst salary is $77,901 a year with a $19,851 bonus. However, the actual range is between $53K and $143K with the largest and most prominent firms offering the highest salaries. Glassdoor’s average base salary is closer to $94,383 with analysts at J.P. Morgan earning $101,327 and Goldman Sachs analysts earning $99,699.
The majority of equity research analyst jobs are located in major metropolitan areas such as New York City, Chicago, Boston, and San Francisco, which means cost-of-living should be considered. You’ll find the highest-paid positions at private equity firms and other large financial services institutions.
Getting Started
At the minimum, you’ll need a bachelor’s degree to become an equity researcher and typically start out as an associate. Even then, a bachelor’s degree is typically not enough to get you a job at a top investment firm. Instead, you’ll need either a CFA designation or an MBA.
The CFA is mandatory for security analysis and can be earned more quickly and cheaply than an MBA. However, with an MBA you’re more likely to have the professional network you need to earn a position at a top investment firm.
Top MBA Programs for the Job
Since a career as an equity research analyst is closely linked to investment banking, the top MBA programs are fairly similar. A few solid MBA program choices include:
NYU Stern
NYU Stern is a top school for a career in investment banking and equity research. The banking specialization covers risk management and other related topics with classes such as credit risk, valuation, and risk management in financial institutions. There is also a quantitative finance specialization specifically for more mathematically-inclined finance careers. You’ll learn stochastic processes, statistics, and applied economics.
Columbia Business School
At the Columbia Business School, the Investment Banking Club provides an opportunity to learn investment banking and recruiting, helping students develop strong relationships in the industry. There is also a specific Equity Research Club, which is designed to educate, inform, and bring together Columbia MBA students interested in this career field.
University of Chicago Booth
The Investment Banking Group at Chicago Booth is equipped to help MBA students learn about the investment banking industry. The goal is to guide students to landing a successful career at an investment bank. There’s also an Analytical Finance concentration designed for students interested in risk management, equity research, and more. Classes include Advanced Investments and Advanced Models of Option Pricing and Credit Risk.
Top 5 Business Schools for Investment Banking Careers
If you’re hoping to land a high-paying investing career, not just any business school will do. You have to attend a top business school that has a history of employing graduates. Even then, you’ll most likely need to be near the top of your class or have an impressive background/internship to land the job you want.
Continue reading…Masters Advantage: Business Analytics or Accounting?
A specialized master’s degree can be a valuable tool for enhancing your career prospects. If you have a specific career in mind—financial analysis, marketing, statistics, etc.—a master’s degree in your specialty can provide you with the advanced training you need to be successful. So, the question is, what specialized masters is right for you and will give you the advantage you want?
To help you out, we’re putting the most popular master’s degrees head-to-head in our new series. First up, we’re comparing Business Analytics and Accounting.
What is a Master’s in Business Analytics?
A Master’s in Business Analytics is designed for students interested in big data. These individuals are interested in using machine learning algorithms to process data and draw conclusions in everything from sports to consulting, manufacturing, and healthcare. It’s all about making sense of vast amounts of data to streamline business.
What is a Master’s in Accounting?
A Master’s in Accounting is exactly what it sounds like—it’s hyper-focused on accounting. Individuals who choose this path are interested in completing their CPA examination and pursuing a career in corporate accounting. You’ll be prepared to take a strategic accounting role in audit, tax, financial management, and more.
Business Analytics or Accounting: Coursework
There’s some overlap in the coursework you’ll take as an accounting master’s student and a business analytics student. Both master’s programs delve into financial topics and include finance-related courses. In fact, some Master’s in Business Analytics programs offer a professional track in finance.
Also, in both cases, you’ll dive into analytical techniques and data modeling—though in the Accounting program it will always emphasize finance and accounting areas whereas Business Analytics tends to be more generic.
However, that’s where the similarities end. In Business Analytics, you’ll dive deep into computer programming, statistics, machine learning, and visualization. On the other hand, a Master’s in Accounting will take you into financial reporting, auditing, business taxation, business law, and management accounting.
Business Analytics or Accounting: Accessibility
Both master’s degrees can typically be completed in 12 months with some programs lasting up to two years. In addition, students can complete either program through full-time, part-time, online, or hybrid tracks. What’s different is the application process and what type of student is best suited to each program.
Business Analytics students must be mathematically inclined and gifted in quantitative fields. Many of these Master’s programs are STEM-designated, so candidates must be prepared to demonstrate high grades and test scores in these subjects.
Master’s in Accounting applicants are expected to have a strong background in accounting, often having earned their undergraduate degree in the same field. Work experience is not typically required unless the student has no practical training in accounting.
Business Analytics or Accounting: Careers
As a Business Analyst, you may earn a higher salary than an accountant when starting—around $15,000 more—and you’ll have more job opportunities. A Master’s in Business Analytics graduate can work in a variety of analyst roles in everything from marketing to finance, strategy, and statistics. While, on the other hand, a Master’s in Accounting graduate is typically regulated to an accounting, tax, or audit career.
Business Analysts are in high demand and have many opportunities regarding their careers, typically earning around $85,000 to start. They can work in almost any industry and in a variety of job functions, including:
- Business analyst
- Budget analyst
- Financial analyst
- Corporate strategy analyst
- Actuary
- Social media data analyst
- Business intelligence analyst
- Machine learning analyst
Master’s in Accounting graduates are also in high demand and can work in a range of industries. Everyone from public accounting firms to government organizations, financial institutions, and nonprofits need accountants. However, when it comes to job functions, graduates are typically limited to working as an accountant or an auditor earning around $69,000 to start.
Business Analytics or Accounting: The Top Programs
To earn your Master’s in Business Analytics or Accounting, there are many top programs across the country that are highly regarded. It all depends on your specific interests and goals.
If you want the best of both worlds, the USC Marshall School of Business is the only program to be in the top five for both degrees. It is highly regarded for offering great flexibility and quality curriculum.
In the Midwest, one of the top Master’s program for Business Analytics can be found at Purdue University’s Krannert School of Management. Its MS Business Analytics and Information Management program is 11 months long, affordable, and STEM-oriented. For a Master’s in Accounting, you should look toward the University of Illinois Gies College of Business, which offers the best STEM-designated accounting program in the country with a 98 percent job placement rate.
On the East Coast, MIT Sloan offers the best Master’s in Business Analytics program with 100 percent of the most recent graduating class earning employment offers by graduation. Whereas NYU Stern an excellent Master of Science in Accounting, ranked 9th overall by the U.S. News & World Report.
News Roundup – Diversity & Inclusion at Temple Fox, Coaching Leadership at Graziadio, and More
Let’s take a look at some of the biggest stories from this week, including an emphasis on diversity and inclusion at Temple University’s Fox School of Business, and more.
Workplace Diversity and Inclusion Decoded: A Conversation with an Expert – Fox School Research Ideas Marketplace
What do diversity and inclusion really look like in the workplace of 2019?
The Fox School of Business‘ On the Verge editorial team recently interviewed Sabrina Volpone, Ph.D. ’13, an expert in the field, to answer that question. She specializes in gender, immigrant status, sexual orientation, and disability within the workplace. Her research has been published in the Journal of Applied Psychology, Personnel Psychology, and Organizational Behavior & Human Decision Processes.
Born in Dallas-Fort Worth, Volpone was raised by a mother who worked as an accountant for a large firm. Volpone recalls her mother struggling when pregnant with one of her younger siblings, as the firm fired her when she was becoming sick at her desk. The injustice of a lack of any policy to protect her mother and others in her situation inspired Volpone to pursue organizational diversity as a professional and academic path.
“Diversity is more than just checking a demographic box or filling a quota. To really leverage the benefits of diversity we have to talk about inclusion, a separate, but related, topic. The difference has often been illustrated in the following quote from Verna Myers, the vice president of inclusion strategy for Netflix: ‘Diversity is being invited to the party, and inclusion is being asked to dance,'” Volpone says.
She further discussed how companies can adapt to reflect the needs of an ever more diverse population of workers. “Those who are thinking about the lived experiences of employees, they create policies and procedures that capture that. ” she says.
Read here for more news from On the Verge.
Dr. Mark Allen Featured on Coaching for Leaders Podcast with Dave Stachowiak – Pepperdine Graziadio Newsroom
Mark Allen, Ph.D. Lecturer in Organizational Theory and Management at Pepperdine Graziadio, recently spoke with Dave Stachowiak, creator of Coaching for Leaders, an organization which helps professionals to lead their teams with greater vision.
The two discussed why talent acquisition and leadership development need to be a primary focus of any successful company—not just afterthoughts after reaching a bottom line. The imminent departure of baby boomers from the workforce, the two agreed, has created a dire necessity for employers to train staffs to carry companies that were created by a different generation.
Allen says:
“Right now unemployment is under four percent in the U.S. and we are having trouble finding good people. This is before the mass exodus of the baby boomers. So it’s not reasonable to assume talent … Leadership is not a business outcome—its a means to an end.”
Click here to listen to the podcast and to learn more about Allen’s research.
Professor Allen Adamson Outlines How Changes Across the Denim Industry are Impacting Clothing Company True Religion Following its Recent Bankruptcy Filing – Stern News and Events
Allen Adamson, co-founder of brand consulting firm Metaforce and NYU Stern adjunct professor, recently weighed in on the changing face of the denim industry, which is reflective of shifts in global markets for many other consumer products.
True Religion, which filed for bankruptcy in 2017, is one of many luxury brands which have had to accommodate the needs of its users in terms of affordability and fit. An interim CEO, Farla Efros, was the third to move into the position since 2018. Her role is to assist the company in the shift to more curvy fits for a wider audience, along with a greater e-commerce presence and a lower price point.
Professor Adamson weighed in on the changes in the company:
“The denim market has changed since the early 2000s. [True Religion’s] old consumers aren’t as relevant [to the brand], and all these new users have no idea who the brand is or perhaps what it stands for, because they’ve seen a fragmented, scattered effort over the last eight years. It’s really hard for a brand to make a new first impression [following the bankruptcy filing]”
You can find the full article on lifestyle blog Glossy.
A New Name—and a New Era—for The Wharton School’s Book Publishing Arm – Wharton News
The Wharton School of the University of Pennsylvania has announced a name change for its publishing division. Formerly known as The Wharton Digital Press, it is now called The Wharton School Press.
Peter Fader, Frances and Pei-Yuan Chia Professor and Chair of Wharton School Press’s Faculty Advisory Board, says of the change, “[It] underscores the Wharton School name, a key selling point for readers seeking trusted information and for authors looking for a prestigious publishing partner … In our conversations with stakeholders, including faculty and authors, we heard time and again that the Wharton School’s name is among our greatest strengths. This evolution will enable the Press to make an even greater impact in the years ahead.”
Wharton was the first and only business school to launch a press devoted to digital publishing. After establishing the press as an innovator in the field, its leadership decided to shift the focus in order to create a greater global impact. Its books have received honors such as Economist Book of the Year and regular coverage in the Wall Street Journal and The New York Times.
Shannon Berning, Director and Publisher of the Wharton School Press, says:
“The spirit of innovation and experimentation with which the Press was launched will continue to be central to the Press’s work … We will also continue to publish a select list of research-driven, fast-reading, and actionable business books and operate the Wharton School Press Bookstore, which features a curated selection of thought-leading books by Wharton faculty.”
Read more about the Press and its publications here.
Larger Salaries, Job Offers, Highlight NYU Stern 2019 Employment Report
With over 95 percent of NYU full-time MBA students earning a job offer three months after graduation, and a $140,000 median annual salary, career prospects are looking better than ever for those enrolled at the Stern School of Business.
Continue reading…NYU Now Accepting GMAC’s Executive Assessment Test Scores for All MBA Programs
Hopeful New York University Stern School of Business applicants will have a new pathway to join the prestigious school.
