UDR (NYSE:UDR – Get Free Report) and Boston Properties (NYSE:BXP – Get Free Report) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.
Institutional and Insider Ownership
97.8% of UDR shares are owned by institutional investors. Comparatively, 98.7% of Boston Properties shares are owned by institutional investors. 3.7% of UDR shares are owned by insiders. Comparatively, 1.4% of Boston Properties shares are owned by 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.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for UDR and Boston Properties, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
UDR | 1 | 8 | 8 | 0 | 2.41 |
Boston Properties | 1 | 5 | 7 | 0 | 2.46 |
Dividends
UDR pays an annual dividend of $1.70 per share and has a dividend yield of 4.0%. Boston Properties pays an annual dividend of $3.92 per share and has a dividend yield of 5.4%. UDR pays out 459.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Boston Properties pays out 3,920.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UDR has raised its dividend for 15 consecutive years.
Profitability
This table compares UDR and Boston Properties’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
UDR | 7.68% | 3.57% | 1.19% |
Boston Properties | 0.38% | 3.90% | 1.24% |
Risk & Volatility
UDR has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Boston Properties has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.
Earnings and Valuation
This table compares UDR and Boston Properties”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
UDR | $1.63 billion | 8.71 | $444.35 million | $0.37 | 116.18 |
Boston Properties | $3.41 billion | 3.36 | $14.27 million | $0.10 | 723.83 |
UDR has higher earnings, but lower revenue than Boston Properties. UDR is trading at a lower price-to-earnings ratio than Boston Properties, indicating that it is currently the more affordable of the two stocks.
Summary
Boston Properties beats UDR on 9 of the 17 factors compared between the two stocks.
About UDR
UDR, Inc. (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S. markets. As of December 31, 2023, UDR owned or had an ownership position in 60,336 apartment homes including 359 homes under development. For over 51 years, UDR has delivered long-term value to shareholders, the best standard of service to Residents and the highest quality experience for Associates.
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.
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