Critical Survey: Boston Properties (NYSE:BXP) & Universal Health Realty Income Trust (NYSE:UHT)

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

Valuation & Earnings

This table compares Universal Health Realty Income Trust and Boston Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Universal Health Realty Income Trust	$98.42 million	5.92	$15.40 million	$1.17	36.02
Boston Properties	$3.34 billion	4.22	$190.21 million	$1.22	73.54

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

Analyst Ratings

This is a summary of current recommendations and price targets for Universal Health Realty Income Trust and Boston Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Universal Health Realty Income Trust	0	0	0	0	N/A
Boston Properties	0	6	5	0	2.45

Boston Properties has a consensus target price of $75.45, suggesting a potential downside of 15.90%. Given Boston Properties’ higher possible upside, analysts plainly believe Boston Properties is more favorable than Universal Health Realty Income Trust.

Profitability

This table compares Universal Health Realty Income Trust and Boston Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Universal Health Realty Income Trust	18.33%	9.04%	3.02%
Boston Properties	5.01%	2.05%	0.66%

Risk and Volatility

Universal Health Realty Income Trust has a beta of 0.82, indicating that its share price is 18% 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.

Insider and Institutional Ownership

64.7% of Universal Health Realty Income Trust shares are held by institutional investors. Comparatively, 98.7% of Boston Properties shares are held by institutional investors. 2.2% of Universal Health Realty Income Trust shares are held by insiders. Comparatively, 1.4% of Boston Properties shares are held by 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

Universal Health Realty Income Trust pays an annual dividend of $2.92 per share and has a dividend yield of 6.9%. Boston Properties pays an annual dividend of $3.92 per share and has a dividend yield of 4.4%. Universal Health Realty Income Trust pays out 249.6% 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 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. Universal Health Realty Income Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Boston Properties beats Universal Health Realty Income Trust on 8 of the 15 factors compared between the two stocks.

About Universal Health Realty Income Trust

Universal Health Realty Income Trust, a real estate investment trust, invests in healthcare and human-service related facilities including acute care hospitals, behavioral health care hospitals, specialty facilities, medical/office buildings, free-standing emergency departments and childcare centers. We have investments or commitments in seventy-six properties located in twenty-one states.

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.