Hudson Pacific Properties (NYSE:HPP) vs. Douglas Emmett (NYSE:DEI) Critical Comparison

Hudson Pacific Properties (NYSE:HPP) and Douglas Emmett (NYSE:DEI) are both small-cap real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.

Profitability

This table compares Hudson Pacific Properties and Douglas Emmett’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hudson Pacific Properties	-80.01%	-25.07%	-9.02%
Douglas Emmett	-2.04%	-0.60%	-0.22%

Volatility and Risk

Hudson Pacific Properties has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500. Comparatively, Douglas Emmett has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Insider & Institutional Ownership

97.6% of Hudson Pacific Properties shares are held by institutional investors. Comparatively, 97.4% of Douglas Emmett shares are held by institutional investors. 2.5% of Hudson Pacific Properties shares are held by insiders. Comparatively, 13.0% of Douglas Emmett shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Hudson Pacific Properties and Douglas Emmett, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hudson Pacific Properties	3	7	3	0	2.00
Douglas Emmett	1	7	1	0	2.00

Hudson Pacific Properties presently has a consensus price target of $15.27, suggesting a potential upside of 81.17%. Douglas Emmett has a consensus price target of $13.14, suggesting a potential upside of 29.17%. Given Hudson Pacific Properties’ higher probable upside, equities analysts clearly believe Hudson Pacific Properties is more favorable than Douglas Emmett.

Valuation and Earnings

This table compares Hudson Pacific Properties and Douglas Emmett”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hudson Pacific Properties	$812.79 million	0.56	-$561.69 million	($10.13)	-0.83
Douglas Emmett	$1.00 billion	1.70	$16.27 million	($0.13)	-78.27

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

Dividends

Hudson Pacific Properties pays an annual dividend of $0.10 per share and has a dividend yield of 1.2%. Douglas Emmett pays an annual dividend of $0.76 per share and has a dividend yield of 7.5%. Hudson Pacific Properties pays out -1.0% of its earnings in the form of a dividend. Douglas Emmett pays out -584.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Douglas Emmett is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Douglas Emmett beats Hudson Pacific Properties on 10 of the 15 factors compared between the two stocks.

About Hudson Pacific Properties

Hudson Pacific Properties (NYSE: HPP) is a real estate investment trust serving dynamic tech and media tenants in global epicenters for these synergistic, converging and secular growth industries. Hudson Pacific's unique and high-barrier tech and media focus leverages a full-service, end-to-end value creation platform forged through deep strategic relationships and niche expertise across identifying, acquiring, transforming and developing properties into world-class amenitized, collaborative and sustainable office and studio space.

About Douglas Emmett

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.