Comparing Boston Properties (NYSE:BXP) and Transcontinental Realty Investors (NYSE:TCI)

Transcontinental Realty Investors (NYSE:TCI) and Boston Properties (NYSE:BXP) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Profitability

This table compares Transcontinental Realty Investors and Boston Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transcontinental Realty Investors	9.91%	0.59%	0.47%
Boston Properties	5.01%	2.05%	0.66%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transcontinental Realty Investors	0	0	0	0	N/A
Boston Properties	1	8	5	0	2.29

Boston Properties has a consensus target price of $70.54, indicating a potential upside of 0.53%. Given Boston Properties’ higher probable upside, analysts plainly believe Boston Properties is more favorable than Transcontinental Realty Investors.

Institutional & Insider Ownership

98.7% of Boston Properties shares are held by institutional investors. 85.6% of Transcontinental Realty Investors shares are held by company insiders. Comparatively, 1.4% of Boston Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Transcontinental Realty Investors has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Boston Properties has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.

Earnings & Valuation

This table compares Transcontinental Realty Investors and Boston Properties’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transcontinental Realty Investors	$47.09 million	5.45	$5.94 million	$0.58	51.26
Boston Properties	$3.34 billion	3.30	$190.21 million	$1.22	57.52

Boston Properties has higher revenue and earnings than Transcontinental Realty Investors. Transcontinental Realty Investors 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 Transcontinental Realty Investors on 10 of the 13 factors compared between the two stocks.

About Transcontinental Realty Investors

Transcontinental Realty Investors, Inc., a Dallas-based real estate investment company, holds a diverse portfolio of equity real estate located across the U.S., including office buildings, apartments, shopping centers, and developed and undeveloped land. The Company invests in real estate through direct ownership, leases and partnerships and invests in mortgage loans on real estate. The Company also holds mortgage receivables.

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.