Analyzing BrightSpire Capital (NYSE:BRSP) & Boston Properties (NYSE:BXP)

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

Dividends

BrightSpire Capital pays an annual dividend of $0.64 per share and has a dividend yield of 10.0%. Boston Properties pays an annual dividend of $3.92 per share and has a dividend yield of 4.8%. BrightSpire Capital pays out -62.7% of its earnings in the form of a dividend. Boston Properties pays out 169.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BrightSpire Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares BrightSpire Capital and Boston Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BrightSpire Capital	$364.80 million	2.29	-$15.55 million	($1.02)	-6.30
Boston Properties	$3.27 billion	3.92	$190.21 million	$2.31	35.15

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

Risk and Volatility

BrightSpire Capital has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500. Comparatively, Boston Properties has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for BrightSpire Capital and Boston Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BrightSpire Capital	1	3	1	0	2.00
Boston Properties	0	7	6	0	2.46

BrightSpire Capital currently has a consensus target price of $7.00, suggesting a potential upside of 8.86%. Boston Properties has a consensus target price of $81.38, suggesting a potential upside of 0.22%. Given BrightSpire Capital’s higher possible upside, equities analysts plainly believe BrightSpire Capital is more favorable than Boston Properties.

Profitability

This table compares BrightSpire Capital and Boston Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BrightSpire Capital	-69.35%	9.44%	2.79%
Boston Properties	10.75%	4.40%	1.40%

Insider and Institutional Ownership

56.6% of BrightSpire Capital shares are held by institutional investors. Comparatively, 98.7% of Boston Properties shares are held by institutional investors. 1.9% of BrightSpire Capital shares are held by insiders. Comparatively, 1.4% of Boston Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Boston Properties beats BrightSpire Capital on 9 of the 16 factors compared between the two stocks.

About BrightSpire Capital

BrightSpire Capital, Inc. operates as a commercial real estate (CRE) credit real estate investment trust in the United States and Europe. The company operates through Senior and Mezzanine Loans and Preferred Equity; Net Leased and Other Real Estate; and Corporate and Other segments. It focuses on originating, acquiring, financing, and managing a diversified portfolio of CRE debt investments consisting of first mortgage loans, senior loans, debt securities, mezzanine loans, and preferred equity investments, as well as net leased properties. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Colony Credit Real Estate, Inc. and changed its name to BrightSpire Capital, Inc. in June 2021. BrightSpire Capital, Inc. was incorporated in 2017 and is headquartered in New York, New York.

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.