Head-To-Head Contrast: SL Green Realty Corporation (SLG) versus Boston Properties (BXP)
SL Green Realty Corporation (NYSE: SLG) and Boston Properties (NYSE:BXP) are both mid-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.
Earnings & Valuation
This table compares SL Green Realty Corporation and Boston Properties’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|SL Green Realty Corporation||$1.53 billion||6.23||$871.44 million||$0.97||99.36|
|Boston Properties||$2.57 billion||7.24||$1.51 billion||$2.94||41.02|
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.
SL Green Realty Corporation pays an annual dividend of $3.10 per share and has a dividend yield of 3.2%. Boston Properties pays an annual dividend of $3.00 per share and has a dividend yield of 2.5%. 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. 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. Boston Properties has raised its dividend for 5 consecutive years.
This table compares SL Green Realty Corporation and Boston Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SL Green Realty Corporation||7.20%||1.43%||0.72%|
This is a breakdown of recent ratings and target prices for SL Green Realty Corporation and Boston Properties, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SL Green Realty Corporation||0||7||5||0||2.42|
SL Green Realty Corporation currently has a consensus target price of $115.82, indicating a potential upside of 20.17%. Boston Properties has a consensus target price of $134.55, indicating a potential upside of 11.56%. Given SL Green Realty Corporation’s higher probable upside, analysts clearly believe SL Green Realty Corporation is more favorable than Boston Properties.
Insider & Institutional Ownership
94.7% of Boston Properties shares are owned by institutional investors. 3.1% of SL Green Realty Corporation shares are owned by company insiders. Comparatively, 6.2% of Boston Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
SL Green Realty Corporation has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Boston Properties has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.
Boston Properties beats SL Green Realty Corporation on 12 of the 15 factors compared between the two stocks.
About SL Green Realty Corporation
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.
About Boston Properties
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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