Reviewing Hudson Pacific Properties (HPP) and Its Peers

Hudson Pacific Properties (NYSE:HPP) is one of 59 public 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 earnings, valuation, analyst recommendations, institutional ownership, profitability, dividends and risk.

Valuation and Earnings

This table compares Hudson Pacific Properties and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hudson Pacific Properties	$831.10 million	-$561.69 million	-0.87
Hudson Pacific Properties Competitors	$530.25 million	-$49.56 million	15.00

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hudson Pacific Properties	3	7	3	0	2.00
Hudson Pacific Properties Competitors	946	2835	2691	25	2.28

Hudson Pacific Properties presently has a consensus target price of $15.27, suggesting a potential upside of 72.59%. As a group, “Office REITs” companies have a potential upside of 1.39%. Given Hudson Pacific Properties’ higher probable upside, equities analysts clearly believe Hudson Pacific Properties is more favorable than its competitors.

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	-80.01%	-25.07%	-9.02%
Hudson Pacific Properties Competitors	-16.89%	-7.45%	-0.14%

Risk & Volatility

Hudson Pacific Properties has a beta of 2.02, indicating that its share price is 102% more volatile than the S&P 500. Comparatively, Hudson Pacific Properties’ competitors have a beta of 1.02, indicating that their average share price is 2% more volatile than the S&P 500.

Insider & Institutional Ownership

97.6% of Hudson Pacific Properties shares are owned by institutional investors. Comparatively, 61.2% of shares of all “Office REITs” companies are owned by institutional investors. 2.5% of Hudson Pacific Properties shares are owned by insiders. Comparatively, 8.7% of shares of all “Office REITs” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Hudson Pacific Properties competitors beat Hudson Pacific Properties on 9 of the 13 factors compared.

Hudson Pacific Properties Company Profile

Hudson Pacific Properties is a real estate investment trust that owns, operates and develops office and studio properties. Its office buildings serve businesses in sectors such as technology, media and entertainment, while its studio facilities provide sound stages and production space for film and television work. The company’s properties are concentrated in major West Coast markets, including Los Angeles, the San Francisco Bay Area and Seattle, as well as Vancouver, British Columbia. Its studio platform, Sunset Studios, supports production activity with purpose-built facilities and related services.