Hudson Pacific Properties (NYSE: HPP) is one of 20 publicly-traded companies in the “Office REITs” industry, but how does it contrast to its competitors? We will compare Hudson Pacific Properties to related businesses based on the strength of its profitability, analyst recommendations, earnings, risk, dividends, institutional ownership and valuation.

Volatility and Risk

Hudson Pacific Properties has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Hudson Pacific Properties’ competitors have a beta of 0.90, suggesting that their average stock price is 10% less volatile than the S&P 500.

Dividends

Hudson Pacific Properties pays an annual dividend of $1.00 per share and has a dividend yield of 3.0%. Hudson Pacific Properties pays out 277.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Office REITs” companies pay a dividend yield of 3.3% and pay out 249.2% of their earnings in the form of a dividend. Hudson Pacific Properties lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Hudson Pacific Properties and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hudson Pacific Properties 7.87% 1.37% 0.79%
Hudson Pacific Properties Competitors 5.41% 1.37% 0.69%

Analyst Recommendations

This is a summary of recent recommendations for Hudson Pacific Properties and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hudson Pacific Properties 0 2 6 0 2.75
Hudson Pacific Properties Competitors 114 515 553 3 2.38

Hudson Pacific Properties presently has a consensus price target of $38.06, suggesting a potential upside of 14.54%. As a group, “Office REITs” companies have a potential upside of 6.52%. Given Hudson Pacific Properties’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Hudson Pacific Properties is more favorable than its competitors.

Valuation & Earnings

This table compares Hudson Pacific Properties and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Hudson Pacific Properties $680.57 million $289.13 million 92.31
Hudson Pacific Properties Competitors $672.08 million $356.91 million 60.43

Hudson Pacific Properties has higher revenue, but lower earnings than its competitors. Hudson Pacific Properties is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

85.4% of shares of all “Office REITs” companies are owned by institutional investors. 13.4% of Hudson Pacific Properties shares are owned by insiders. Comparatively, 2.8% of shares of all “Office REITs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Hudson Pacific Properties competitors beat Hudson Pacific Properties on 8 of the 15 factors compared.

Hudson Pacific Properties Company Profile

Hudson Pacific Properties, Inc. is a real estate investment trust (REIT). The Company operates in two segments: office properties, and media and entertainment properties. The Company is focused on acquiring, repositioning, developing and operating office and media and entertainment properties in submarkets throughout Northern and Southern California and the Pacific Northwest. As of December 31, 2016, the Company’s portfolio included office properties consisting of an aggregate of approximately 14.1 million square feet, and media and entertainment properties consisting of approximately 0.9 million square feet of sound-stage, office and supporting production facilities. As of December 31, 2016, the Company also owned undeveloped density rights for approximately 2.5 million square feet of future office and residential space. The Company’s in-service office properties include stabilized office properties and lease-up office properties.

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