Hudson Pacific Properties (NYSE:HPP) and Alexandria Real Estate Equities (NYSE:ARE) Head to Head Comparison

Alexandria Real Estate Equities (NYSE:ARE) and Hudson Pacific Properties (NYSE:HPP) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Profitability

This table compares Alexandria Real Estate Equities and Hudson Pacific Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alexandria Real Estate Equities	-36.03%	-5.21%	-2.96%
Hudson Pacific Properties	-67.89%	-19.05%	-7.27%

Earnings and Valuation

This table compares Alexandria Real Estate Equities and Hudson Pacific Properties”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexandria Real Estate Equities	$3.03 billion	2.86	-$1.43 billion	($6.27)	-7.92
Hudson Pacific Properties	$831.10 million	0.94	-$561.69 million	($10.10)	-1.43

Hudson Pacific Properties has lower revenue, but higher earnings than Alexandria Real Estate Equities. Alexandria Real Estate Equities 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Alexandria Real Estate Equities and Hudson Pacific Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexandria Real Estate Equities	4	9	3	0	1.94
Hudson Pacific Properties	3	7	3	0	2.00

Alexandria Real Estate Equities presently has a consensus target price of $51.08, suggesting a potential upside of 2.84%. Hudson Pacific Properties has a consensus target price of $14.32, suggesting a potential downside of 0.73%. Given Alexandria Real Estate Equities’ higher probable upside, equities analysts clearly believe Alexandria Real Estate Equities is more favorable than Hudson Pacific Properties.

Institutional & Insider Ownership

96.5% of Alexandria Real Estate Equities shares are held by institutional investors. Comparatively, 97.6% of Hudson Pacific Properties shares are held by institutional investors. 1.4% of Alexandria Real Estate Equities shares are held by company insiders. Comparatively, 2.5% of Hudson Pacific Properties shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Alexandria Real Estate Equities has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Hudson Pacific Properties has a beta of 1.89, suggesting that its stock price is 89% more volatile than the S&P 500.

Summary

Alexandria Real Estate Equities beats Hudson Pacific Properties on 7 of the 13 factors compared between the two stocks.

About Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a total market capitalization of $33.1 billion and an asset base in North America of 73.5 million SF as of December 31, 2023, which includes 42.0 million RSF of operating properties, 5.5 million RSF of Class A/A+ properties undergoing construction and one near-term project expected to commence construction in the next two years, 2.1 million RSF of priority anticipated development and redevelopment projects, and 23.9 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science, agrifoodtech, climate innovation, and technology companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.

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.