Reviewing BXP (NYSE:BXP) and Easterly Government Properties (NYSE:DEA)

Easterly Government Properties (NYSE:DEAGet Free Report) and BXP (NYSE:BXPGet Free Report) are both real estate companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Easterly Government Properties and BXP’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Easterly Government Properties 2.86% 0.75% 0.30%
BXP 8.44% 3.88% 1.16%

Volatility & Risk

Easterly Government Properties has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, BXP has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Earnings & Valuation

This table compares Easterly Government Properties and BXP”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Easterly Government Properties $357.15 million 3.25 $13.00 million $0.21 116.81
BXP $3.48 billion 3.10 $276.80 million $1.86 36.40

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

Insider and Institutional Ownership

86.5% of Easterly Government Properties shares are owned by institutional investors. Comparatively, 98.7% of BXP shares are owned by institutional investors. 6.5% of Easterly Government Properties shares are owned by company insiders. Comparatively, 1.5% of BXP shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Easterly Government Properties pays an annual dividend of $1.80 per share and has a dividend yield of 7.3%. BXP pays an annual dividend of $2.80 per share and has a dividend yield of 4.1%. Easterly Government Properties pays out 857.1% 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 150.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Easterly Government Properties and BXP, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Easterly Government Properties 1 4 1 0 2.00
BXP 0 9 11 0 2.55

Easterly Government Properties presently has a consensus price target of $24.07, indicating a potential downside of 1.85%. BXP has a consensus price target of $74.58, indicating a potential upside of 10.16%. Given BXP’s stronger consensus rating and higher possible upside, analysts clearly believe BXP is more favorable than Easterly Government Properties.

Summary

BXP beats Easterly Government Properties on 12 of the 16 factors compared between the two stocks.

About Easterly Government Properties

(Get Free Report)

Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA).

About BXP

(Get Free Report)

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.

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