Corporate Office Properties Trust (NYSE: OFC) and Boston Properties (NYSE:BXP) are both mid-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Risk & Volatility

Corporate Office Properties Trust has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Boston Properties has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Institutional and Insider Ownership

94.5% of Boston Properties shares are owned by institutional investors. 0.6% of Corporate Office Properties Trust shares are owned by insiders. Comparatively, 6.2% of Boston Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Corporate Office Properties Trust and Boston Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Corporate Office Properties Trust 15.86% 6.55% 2.48%
Boston Properties 18.18% 5.98% 2.44%

Dividends

Corporate Office Properties Trust pays an annual dividend of $1.10 per share and has a dividend yield of 3.5%. Boston Properties pays an annual dividend of $3.00 per share and has a dividend yield of 2.4%. Corporate Office Properties Trust pays out 150.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Corporate Office Properties Trust and Boston Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Corporate Office Properties Trust 2 6 1 0 1.89
Boston Properties 0 8 4 0 2.33

Corporate Office Properties Trust presently has a consensus target price of $33.83, indicating a potential upside of 7.10%. Boston Properties has a consensus target price of $132.91, indicating a potential upside of 8.12%. Given Boston Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Boston Properties is more favorable than Corporate Office Properties Trust.

Valuation and Earnings

This table compares Corporate Office Properties Trust and Boston Properties’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Corporate Office Properties Trust $578.09 million 5.44 $290.41 million $0.73 43.27
Boston Properties $2.57 billion 7.38 $1.51 billion $2.94 41.81

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

Summary

Boston Properties beats Corporate Office Properties Trust on 11 of the 15 factors compared between the two stocks.

Corporate Office Properties Trust Company Profile

Corporate Office Properties Trust is a fully-integrated and self-managed real estate investment trust (REIT). The Company owns, manages, leases, develops and acquires office and data center properties. The Company’s segments are Defense/IT Locations; Regional Office; operating wholesale data center, and other. As of December 31, 2016, the Company’s properties included 164 operating office properties totaling 17.2 million square feet, including 13 triple-net leased, single-tenant data center properties; 11 office properties under construction or redevelopment; 1,028 acres of land controlled for future development, and a wholesale data center with a critical load of 19.25 megawatts. The Company conducts all of its operations through Corporate Office Properties, L.P. (COPLP) and subsidiaries (collectively, the Operating Partnership). COPLP owns real estate both directly and through subsidiary partnerships and limited liability companies (LLCs).

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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