Analyzing Mackenzie Realty Capital (NASDAQ:MKZR) and BXP (NYSE:BXP)

BXP (NYSE:BXP) and Mackenzie Realty Capital (NASDAQ:MKZR) are both real estate companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for BXP and Mackenzie Realty Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BXP	0	9	11	0	2.55
Mackenzie Realty Capital	1	0	0	0	1.00

BXP presently has a consensus target price of $75.26, indicating a potential upside of 14.98%. Given BXP’s stronger consensus rating and higher possible upside, equities research analysts clearly believe BXP is more favorable than Mackenzie Realty Capital.

Profitability

This table compares BXP and Mackenzie Realty Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BXP	8.44%	3.88%	1.16%
Mackenzie Realty Capital	-90.30%	-18.99%	-7.07%

Dividends

BXP pays an annual dividend of $2.80 per share and has a dividend yield of 4.3%. Mackenzie Realty Capital pays an annual dividend of $2.00 per share and has a dividend yield of 137.0%. BXP pays out 150.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mackenzie Realty Capital pays out -32.5% of its earnings in the form of a dividend. Mackenzie Realty Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares BXP and Mackenzie Realty Capital”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BXP	$3.48 billion	3.00	$276.80 million	$1.86	35.19
Mackenzie Realty Capital	$19.38 million	0.17	-$25.92 million	($6.15)	-0.24

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

Insider and Institutional Ownership

98.7% of BXP shares are owned by institutional investors. 1.5% of BXP shares are owned by insiders. Comparatively, 6.3% of Mackenzie Realty Capital shares are owned 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.

Risk & Volatility

BXP has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Mackenzie Realty Capital has a beta of -0.46, suggesting that its share price is 146% less volatile than the S&P 500.

Summary

BXP beats Mackenzie Realty Capital on 13 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 Mackenzie Realty Capital

MacKenzie Realty Capital Inc. is a REIT which focused on investing in multifamily housing and office real estate properties located principally in the United States. MacKenzie Realty Capital Inc. is based in ORINDA, Calif.