Boston Properties (NYSE:BXP) vs. Safehold (NYSE:SAFE) Head to Head Comparison

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

Earnings & Valuation

This table compares Boston Properties and Safehold’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boston Properties	$3.27 billion	2.96	$190.21 million	$1.22	50.52
Safehold	$367.46 million	3.65	-$54.97 million	($0.45)	-41.67

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

Volatility & Risk

Boston Properties has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500. Comparatively, Safehold has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Boston Properties	5.81%	2.35%	0.76%
Safehold	-7.87%	4.43%	1.55%

Analyst Recommendations

This is a breakdown of current ratings for Boston Properties and Safehold, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boston Properties	1	11	5	0	2.24
Safehold	0	4	5	0	2.56

Boston Properties currently has a consensus target price of $68.93, indicating a potential upside of 11.83%. Safehold has a consensus target price of $27.22, indicating a potential upside of 45.19%. Given Safehold’s stronger consensus rating and higher possible upside, analysts clearly believe Safehold is more favorable than Boston Properties.

Insider and Institutional Ownership

98.7% of Boston Properties shares are owned by institutional investors. Comparatively, 70.4% of Safehold shares are owned by institutional investors. 1.4% of Boston Properties shares are owned by insiders. Comparatively, 3.3% of Safehold shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Boston Properties pays an annual dividend of $3.92 per share and has a dividend yield of 6.4%. Safehold pays an annual dividend of $0.70 per share and has a dividend yield of 3.7%. Boston Properties pays out 321.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Safehold pays out -155.6% of its earnings in the form of a dividend.

Summary

Safehold beats Boston Properties on 8 of the 15 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 Safehold

Safehold Inc. (NYSE: SAFE) is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. Having created the modern ground lease industry in 2017, Safehold continues to help owners of high quality multifamily, office, industrial, hospitality, student housing, life science and mixed-use properties generate higher returns with less risk. The Company, which is taxed as a real estate investment trust (REIT), seeks to deliver safe, growing income and long-term capital appreciation to its shareholders.