Boston Properties (NYSE:BXP) versus Rithm Capital (NYSE:RITM) Head-To-Head Review

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

Insider and Institutional Ownership

98.7% of Boston Properties shares are owned by institutional investors. Comparatively, 44.9% of Rithm Capital shares are owned by institutional investors. 1.5% of Boston Properties shares are owned by insiders. Comparatively, 0.4% of Rithm Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Boston Properties and Rithm Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boston Properties	$3.43 billion	3.13	$14.27 million	($0.02)	-3,392.50
Rithm Capital	$2.73 billion	2.26	$931.50 million	$1.20	9.71

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

Profitability

This table compares Boston Properties and Rithm Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boston Properties	0.38%	3.90%	1.24%
Rithm Capital	17.79%	18.15%	2.57%

Dividends

Boston Properties pays an annual dividend of $3.92 per share and has a dividend yield of 5.8%. Rithm Capital pays an annual dividend of $1.00 per share and has a dividend yield of 8.6%. Boston Properties pays out -19,600.0% of its earnings in the form of a dividend. Rithm Capital pays out 83.3% 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 Recommendations

This is a summary of recent ratings and price targets for Boston Properties and Rithm Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boston Properties	1	5	6	0	2.42
Rithm Capital	0	0	8	1	3.11

Boston Properties currently has a consensus target price of $78.67, indicating a potential upside of 15.94%. Rithm Capital has a consensus target price of $13.56, indicating a potential upside of 16.42%. Given Rithm Capital’s stronger consensus rating and higher possible upside, analysts clearly believe Rithm Capital is more favorable than Boston Properties.

Risk and Volatility

Boston Properties has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Rithm Capital has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Summary

Rithm Capital beats Boston Properties on 11 of the 17 factors compared between the two stocks.

About Boston Properties

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.

About Rithm Capital

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based in New York, New York.