Boston Properties (NYSE: BXP) and SL Green Realty Corporation (NYSE:SLG) are both mid-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Insider & Institutional Ownership

93.8% of Boston Properties shares are owned by institutional investors. 6.2% of Boston Properties shares are owned by company insiders. Comparatively, 3.1% of SL Green Realty Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Boston Properties and SL Green Realty Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boston Properties 0 7 5 0 2.42
SL Green Realty Corporation 0 7 5 0 2.42

Boston Properties presently has a consensus price target of $134.73, indicating a potential upside of 10.92%. SL Green Realty Corporation has a consensus price target of $115.82, indicating a potential upside of 18.36%. Given SL Green Realty Corporation’s higher possible upside, analysts clearly believe SL Green Realty Corporation is more favorable than Boston Properties.

Volatility & Risk

Boston Properties has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, SL Green Realty Corporation has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Valuation and Earnings

This table compares Boston Properties and SL Green Realty Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Boston Properties $2.57 billion 7.29 $1.51 billion $2.94 41.31
SL Green Realty Corporation $1.53 billion 6.33 $871.44 million $0.97 100.88

Boston Properties has higher revenue and earnings than SL Green Realty Corporation. Boston Properties is trading at a lower price-to-earnings ratio than SL Green Realty Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Boston Properties and SL Green Realty Corporation’s 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%
SL Green Realty Corporation 7.20% 1.43% 0.72%

Dividends

Boston Properties pays an annual dividend of $3.00 per share and has a dividend yield of 2.5%. SL Green Realty Corporation pays an annual dividend of $3.10 per share and has a dividend yield of 3.2%. 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. SL Green Realty Corporation pays out 319.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SL Green Realty Corporation has increased its dividend for 5 consecutive years. SL Green Realty Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Boston Properties beats SL Green Realty Corporation on 10 of the 15 factors compared between the two stocks.

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.

SL Green Realty Corporation Company Profile

SL Green Realty Corp. is a self-managed real estate investment trust (REIT), with in-house capabilities in property management, acquisitions and dispositions, financing, development and redevelopment, construction and leasing. The Company operates through two segments: real estate, and debt and preferred equity investments. It acquires, owns, repositions, manages and leases commercial office, retail and multifamily properties in the New York Metropolitan area. Its debt and preferred equity activities include purchases and originations, inclusive of advances under future funding obligations, discount and fee amortization, and paid-in-kind interest. As of December 31, 2016, the Company owned or held interests in 24 consolidated commercial office buildings encompassing approximately 16.1 million rentable square feet and seven unconsolidated commercial office buildings encompassing approximately 6.6 million rentable square feet located primarily in midtown Manhattan.

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