Analyzing Douglas Emmett (NYSE:DEI) & BXP (NYSE:BXP)

Douglas Emmett (NYSE:DEI) and BXP (NYSE:BXP) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and price targets for Douglas Emmett and BXP, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Douglas Emmett	0	6	4	0	2.40
BXP	1	10	8	0	2.37

Douglas Emmett presently has a consensus target price of $18.25, suggesting a potential upside of 47.32%. BXP has a consensus target price of $79.26, suggesting a potential upside of 14.75%. Given Douglas Emmett’s stronger consensus rating and higher probable upside, research analysts plainly believe Douglas Emmett is more favorable than BXP.

Volatility and Risk

Douglas Emmett has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, BXP has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.

Earnings and Valuation

This table compares Douglas Emmett and BXP”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Douglas Emmett	$999.70 million	2.07	$23.52 million	$0.22	56.31
BXP	$3.46 billion	3.16	$14.27 million	($1.27)	-54.39

Douglas Emmett has higher earnings, but lower revenue than BXP. BXP is trading at a lower price-to-earnings ratio than Douglas Emmett, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

97.4% of Douglas Emmett shares are held by institutional investors. Comparatively, 98.7% of BXP shares are held by institutional investors. 15.1% of Douglas Emmett shares are held by company insiders. Comparatively, 1.4% of BXP shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Douglas Emmett and BXP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Douglas Emmett	3.77%	1.04%	0.40%
BXP	-5.82%	1.35%	0.41%

Dividends

Douglas Emmett pays an annual dividend of $0.76 per share and has a dividend yield of 6.1%. BXP pays an annual dividend of $2.80 per share and has a dividend yield of 4.1%. Douglas Emmett pays out 345.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BXP pays out -220.5% of its earnings in the form of a dividend.

Summary

Douglas Emmett beats BXP on 9 of the 16 factors compared between the two stocks.

About Douglas Emmett

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.

About BXP

Boston Properties, Inc. (NYSE: BXP) (BXP or the Company) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets – Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 50 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). Including properties owned by joint ventures, BXP's portfolio totals 53.3 million square feet and 188 properties, including 10 properties under construction/redevelopment. BXP's properties include 167 office properties, 14 retail properties (including two retail properties under construction/redevelopment), six residential properties (including one residential property under construction) and one hotel. BXP is well-known for its inhouse building management expertise and responsiveness to clients' needs. BXP holds a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy clients. BXP actively works to promote its growth and operations in a sustainable and responsible manner. BXP has earned a twelfth consecutive GRESB Green Star recognition and the highest GRESB 5-star Rating. BXP, an S&P 500 company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997.