Contrasting Boston Properties (BXP) and Its Peers

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

Insider & Institutional Ownership

94.4% of Boston Properties shares are owned by institutional investors. Comparatively, 85.2% of shares of all “Office REITs” companies are owned by institutional investors. 6.2% of Boston Properties shares are owned by company insiders. Comparatively, 3.5% of shares of all “Office REITs” companies are owned by company 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Boston Properties and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boston Properties 0 7 4 0 2.36
Boston Properties Competitors 116 510 525 3 2.36

Boston Properties presently has a consensus price target of $134.50, indicating a potential upside of 10.95%. As a group, “Office REITs” companies have a potential upside of 12.53%. Given Boston Properties’ competitors higher probable upside, analysts clearly believe Boston Properties has less favorable growth aspects than its competitors.

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 5.31% 1.41% 0.71%

Earnings and Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Boston Properties $2.57 billion $1.51 billion 41.23
Boston Properties Competitors $655.81 million $342.10 million 30.86

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

Dividends

Boston Properties pays an annual dividend of $3.00 per share and has a dividend yield of 2.5%. 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 218.4% of their earnings in the form of a dividend.

Risk & Volatility

Boston Properties has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Boston Properties’ competitors have a beta of 0.93, meaning that their average stock price is 7% less volatile than the S&P 500.

Summary

Boston Properties beats its competitors on 9 of the 15 factors compared.

About Boston Properties

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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