Head to Head Comparison: Gramercy Property Trust (GPT) & Boston Properties (BXP)
Gramercy Property Trust (NYSE: GPT) and Boston Properties (NYSE:BXP) are both mid-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
Earnings and Valuation
This table compares Gramercy Property Trust and Boston Properties’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Gramercy Property Trust||$525.64 million||9.41||$368.69 million||$0.09||342.15|
|Boston Properties||$2.57 billion||7.32||$1.51 billion||$2.94||41.62|
Boston Properties has higher revenue and earnings than Gramercy Property Trust. Boston Properties is trading at a lower price-to-earnings ratio than Gramercy Property Trust, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for Gramercy Property Trust and Boston Properties, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Gramercy Property Trust||1||1||3||0||2.40|
Gramercy Property Trust presently has a consensus price target of $31.67, suggesting a potential upside of 2.85%. Boston Properties has a consensus price target of $134.55, suggesting a potential upside of 9.96%. Given Boston Properties’ higher possible upside, analysts clearly believe Boston Properties is more favorable than Gramercy Property Trust.
Risk and Volatility
Gramercy Property Trust has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, Boston Properties has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.
Gramercy Property Trust pays an annual dividend of $1.50 per share and has a dividend yield of 4.9%. Boston Properties pays an annual dividend of $3.00 per share and has a dividend yield of 2.5%. Gramercy Property Trust pays out 1,666.9% 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. Gramercy Property Trust has increased its dividend for 2 consecutive years. Gramercy Property Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Gramercy Property Trust and Boston Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Gramercy Property Trust||4.35%||0.81%||0.40%|
Institutional & Insider Ownership
87.1% of Gramercy Property Trust shares are held by institutional investors. Comparatively, 94.6% of Boston Properties shares are held by institutional investors. 1.4% of Gramercy Property Trust shares are held by insiders. Comparatively, 0.9% of Boston Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Boston Properties beats Gramercy Property Trust on 12 of the 17 factors compared between the two stocks.
About Gramercy Property Trust
Gramercy Property Trust is a real estate investment trust (REIT), which is an investor and asset manager of commercial real estate. The Company’s operating segments include Investments/Corporate and Asset Management. The Investments/Corporate segment includes all of its activities related to the investment and ownership of commercial properties located throughout the United States and Europe. The Asset Management segment includes substantially all of its activities related to asset and property management of commercial properties located throughout the United States and Europe. It is engaged in acquiring and managing single-tenant, net leased industrial, office and specialty properties. It focuses on income producing properties leased to tenants in markets in the United States and Europe. It earns revenues through rental revenues on properties that it owns in the United States and asset management revenues on properties owned by third parties in the United States and Europe.
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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