Boston Properties (NYSE: BXP) is one of 20 publicly-traded companies in the “Office REITs” industry, but how does it weigh in compared to its competitors? We will compare Boston Properties to similar businesses based on the strength of its valuation, risk, earnings, profitability, dividends, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

94.6% of Boston Properties shares are held by institutional investors. Comparatively, 85.4% of shares of all “Office REITs” companies are held by institutional investors. 6.2% of Boston Properties shares are held by company insiders. Comparatively, 3.2% of shares of all “Office REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Boston Properties and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Boston Properties 18.18% 5.98% 2.44%
Boston Properties Competitors 5.41% 1.37% 0.69%

Volatility & Risk

Boston Properties has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Boston Properties’ competitors have a beta of 0.90, suggesting that their average stock price is 10% less volatile than the S&P 500.

Valuation & Earnings

This table compares Boston Properties and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Boston Properties $2.57 billion $1.51 billion 43.17
Boston Properties Competitors $672.08 million $356.91 million 60.43

Boston Properties has higher revenue and earnings than its competitors. Boston Properties is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Boston Properties and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boston Properties 0 8 4 0 2.33
Boston Properties Competitors 114 515 552 3 2.38

Boston Properties presently has a consensus target price of $134.55, suggesting a potential upside of 6.01%. As a group, “Office REITs” companies have a potential upside of 7.24%. Given Boston Properties’ competitors stronger consensus rating and higher possible upside, analysts clearly believe Boston Properties has less favorable growth aspects than its competitors.

Dividends

Boston Properties pays an annual dividend of $3.00 per share and has a dividend yield of 2.4%. Boston Properties pays out 102.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Office REITs” companies pay a dividend yield of 3.3% and pay out 249.2% of their earnings in the form of a dividend.

Summary

Boston Properties beats its competitors on 8 of the 15 factors compared.

Boston Properties Company Profile

Boston Properties, Inc. is a real estate investment trust. The Company is an owner and developer of office properties in the United States. Its segments by geographic area are Boston, New York, San Francisco and Washington, DC. Its segments by property type include Office, Residential and Hotel. As of December 31, 2016, the Company owned or had interests in 174 commercial real estate properties, aggregating approximately 47.7 million net rentable square feet of primarily Class A office properties, including eight properties under construction/redevelopment totaling approximately 4.0 million net rentable square feet. As of December 31, 2016, its properties consisted of 164 Office properties (including six properties under construction/redevelopment); one hotel; five retail properties, and four residential properties (including two under construction). Its tenant base includes sectors, such as media technology, legal services, government/public administration and retail.

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