Financial Analysis: Parkway Properties (PKY) vs. Boston Properties (BXP)
Parkway Properties (NYSE: PKY) and Boston Properties (NYSE:BXP) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitabiliy, earnings and analyst recommendations.
This table compares Parkway Properties and Boston Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Parkway Properties pays an annual dividend of $0.40 per share and has a dividend yield of 2.0%. Boston Properties pays an annual dividend of $3.00 per share and has a dividend yield of 2.4%. Boston Properties pays out 111.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional and Insider Ownership
99.8% of Parkway Properties shares are held by institutional investors. Comparatively, 94.4% of Boston Properties shares are held by institutional investors. 7.9% of Parkway Properties shares are held by insiders. Comparatively, 0.9% of Boston Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of current ratings for Parkway Properties and Boston Properties, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Parkway Properties currently has a consensus target price of $20.83, indicating a potential upside of 1.82%. Boston Properties has a consensus target price of $138.21, indicating a potential upside of 9.59%. Given Boston Properties’ stronger consensus rating and higher probable upside, analysts plainly believe Boston Properties is more favorable than Parkway Properties.
Volatility & Risk
Parkway Properties has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, Boston Properties has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.
Valuation & Earnings
This table compares Parkway Properties and Boston Properties’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Parkway Properties||$213.81 million||4.79||$77.41 million||N/A||N/A|
|Boston Properties||$2.53 billion||7.67||$1.49 billion||$2.70||46.71|
Boston Properties has higher revenue and earnings than Parkway Properties.
Boston Properties beats Parkway Properties on 10 of the 14 factors compared between the two stocks.
Parkway Properties Company Profile
Parkway, Inc. is a self-managed real estate investment trust (REIT). The Company owns and operates office properties located in submarkets in Houston, Texas. As of December 31, 2016, the Company’s portfolio consisted of five Class A assets comprising 19 buildings and totaling approximately 8.7 million rentable square feet in the Greenway, Galleria and Westchase submarkets of Houston. In addition, the Company operates a fee-based real estate service (the Third-Party Services Business) through a subsidiary, Eola Office Partners, LLC and its subsidiaries (collectively, Eola), which in total managed approximately 3.8 million square feet (unaudited) for primarily third-party owners, as of December 31, 2016. The Company’s properties include CityWestPlace, San Felipe Plaza, Phoenix Tower, Greenway Plaza and Post Oak Central.
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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