Financial Analysis: Cousins Properties (NYSE:CUZ) & BXP (NYSE:BXP)

BXP (NYSE:BXP) and Cousins Properties (NYSE:CUZ) are both real estate companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Risk and Volatility

BXP has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Cousins Properties has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Profitability

This table compares BXP and Cousins Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BXP	14.99%	6.89%	2.08%
Cousins Properties	1.42%	0.32%	0.16%

Dividends

BXP pays an annual dividend of $2.80 per share and has a dividend yield of 4.5%. Cousins Properties pays an annual dividend of $1.28 per share and has a dividend yield of 4.3%. BXP pays out 83.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cousins Properties pays out 1,422.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BXP is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares BXP and Cousins Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BXP	$3.48 billion	2.88	$276.80 million	$3.34	18.80
Cousins Properties	$993.82 million	4.88	$40.50 million	$0.09	327.44

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BXP	0	8	9	0	2.53
Cousins Properties	0	2	7	0	2.78

BXP currently has a consensus target price of $72.56, indicating a potential upside of 15.56%. Cousins Properties has a consensus target price of $31.50, indicating a potential upside of 6.89%. Given BXP’s higher possible upside, equities research analysts clearly believe BXP is more favorable than Cousins Properties.

Institutional and Insider Ownership

98.7% of BXP shares are held by institutional investors. Comparatively, 94.4% of Cousins Properties shares are held by institutional investors. 1.5% of BXP shares are held by insiders. Comparatively, 1.8% of Cousins Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

BXP beats Cousins Properties on 11 of the 16 factors compared between the two stocks.

About BXP

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 Cousins Properties

Cousins Properties Incorporated ("Cousins") is a fully integrated, self-administered, and self-managed real estate investment trust (REIT). The Company, based in Atlanta and acting through its operating partnership, Cousins Properties LP, primarily invests in Class A office buildings located in high-growth Sun Belt markets. Founded in 1958, Cousins creates shareholder value through its extensive expertise in the development, acquisition, leasing, and management of high-quality real estate assets. The Company has a comprehensive strategy in place based on a simple platform, trophy assets, and opportunistic investments.