Analyzing Boston Properties (BXP) & The Competition
Boston Properties (NYSE: BXP) is one of 21 publicly-traded companies in the “Office REITs” industry, but how does it contrast to its rivals? We will compare Boston Properties to similar companies based on the strength of its dividends, earnings, risk, profitability, valuation, institutional ownership and analyst recommendations.
Insider and Institutional Ownership
94.5% of Boston Properties shares are held by institutional investors. Comparatively, 85.3% of shares of all “Office REITs” companies are held by institutional investors. 6.2% of Boston Properties shares are held by insiders. Comparatively, 3.2% of shares of all “Office REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
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 3.4% and pay out 244.0% of their earnings in the form of a dividend.
This table compares Boston Properties and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Boston Properties Competitors||5.75%||1.44%||0.73%|
Earnings & Valuation
This table compares Boston Properties and its rivals revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Boston Properties||$2.57 billion||$1.51 billion||41.81|
|Boston Properties Competitors||$648.15 million||$343.67 million||50.81|
Boston Properties has higher revenue and earnings than its rivals. Boston Properties is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of current recommendations for Boston Properties and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Boston Properties Competitors||117||521||556||3||2.37|
Boston Properties presently has a consensus target price of $132.91, indicating a potential upside of 8.12%. As a group, “Office REITs” companies have a potential upside of 11.64%. Given Boston Properties’ rivals stronger consensus rating and higher possible upside, analysts clearly believe Boston Properties has less favorable growth aspects than its rivals.
Volatility and 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’ rivals have a beta of 0.90, suggesting that their average stock price is 10% less volatile than the S&P 500.
Boston Properties beats its rivals 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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