Analyzing Boston Properties (NYSE:BXP) & Colony Capital (NYSE:CLNY)
Boston Properties (NYSE:BXP) and Colony Capital (NYSE:CLNY) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.
Insider & Institutional Ownership
89.6% of Boston Properties shares are owned by institutional investors. Comparatively, 79.8% of Colony Capital shares are owned by institutional investors. 1.0% of Boston Properties shares are owned by insiders. Comparatively, 7.0% of Colony Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Boston Properties and Colony Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Boston Properties pays an annual dividend of $3.92 per share and has a dividend yield of 2.7%. Colony Capital pays an annual dividend of $0.44 per share and has a dividend yield of 9.0%. Boston Properties pays out 55.9% of its earnings in the form of a dividend. Colony Capital pays out 71.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Boston Properties has raised its dividend for 3 consecutive years.
Risk and Volatility
Boston Properties has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Colony Capital has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.
Valuation and Earnings
This table compares Boston Properties and Colony Capital’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Boston Properties||$2.96 billion||7.60||$521.53 million||$7.01||20.77|
|Colony Capital||$2.67 billion||0.89||-$519.61 million||$0.62||7.89|
Boston Properties has higher revenue and earnings than Colony Capital. Colony Capital is trading at a lower price-to-earnings ratio than Boston Properties, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for Boston Properties and Colony Capital, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Boston Properties currently has a consensus price target of $145.68, suggesting a potential upside of 0.07%. Colony Capital has a consensus price target of $8.00, suggesting a potential upside of 63.60%. Given Colony Capital’s stronger consensus rating and higher possible upside, analysts clearly believe Colony Capital is more favorable than Boston Properties.
Boston Properties beats Colony Capital on 12 of the 17 factors compared between the two stocks.
Boston Properties Company Profile
Boston Properties (NYSE: BXP) is one of the largest publicly-held developers and owners of Class A office properties in the United States, concentrated in five markets – Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company's portfolio totals 52.7 million square feet and 200 properties, including fourteen properties under construction.
Colony Capital Company Profile
Colony Capital, Inc. (NYSE: CLNY) is a leading global investment management firm with assets under management of $43 billion. The Company manages capital on behalf of its stockholders, as well as institutional and retail investors in private funds, non-traded and traded real estate investment trusts and registered investment companies. The Company has significant holdings in: (a) the healthcare, industrial and hospitality property sectors; (b) Colony Credit Real Estate, Inc. (NYSE: CLNC) and NorthStar Realty Europe Corp. (NYSE: NRE), which are both externally managed by subsidiaries of the Company; and (c) various other equity and debt investments. The Company is headquartered in Los Angeles with key offices in New York, Paris and London, and has over 400 employees across 17 locations in ten countries.
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