Head-To-Head Contrast: Corporate Office Properties Trust (OFC) and Hudson Pacific Properties (HPP)
Corporate Office Properties Trust (NYSE: OFC) and Hudson Pacific Properties (NYSE:HPP) are both mid-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, profitability, institutional ownership and valuation.
Volatility and Risk
Corporate Office Properties Trust has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Hudson Pacific Properties has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.
This table compares Corporate Office Properties Trust and Hudson Pacific Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Corporate Office Properties Trust||15.86%||6.55%||2.48%|
|Hudson Pacific Properties||7.87%||1.37%||0.79%|
Valuation and Earnings
This table compares Corporate Office Properties Trust and Hudson Pacific Properties’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Corporate Office Properties Trust||$578.09 million||5.60||$290.41 million||$0.73||44.79|
|Hudson Pacific Properties||$680.57 million||7.49||$289.13 million||$0.36||91.17|
Corporate Office Properties Trust has higher revenue, but lower earnings than Hudson Pacific Properties. Corporate Office Properties Trust 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.
This is a summary of recent recommendations and price targets for Corporate Office Properties Trust and Hudson Pacific Properties, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Corporate Office Properties Trust||2||6||1||0||1.89|
|Hudson Pacific Properties||0||2||6||0||2.75|
Corporate Office Properties Trust currently has a consensus price target of $33.29, indicating a potential upside of 1.79%. Hudson Pacific Properties has a consensus price target of $38.21, indicating a potential upside of 16.44%. Given Hudson Pacific Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Hudson Pacific Properties is more favorable than Corporate Office Properties Trust.
Corporate Office Properties Trust pays an annual dividend of $1.10 per share and has a dividend yield of 3.4%. Hudson Pacific Properties pays an annual dividend of $1.00 per share and has a dividend yield of 3.0%. Corporate Office Properties Trust pays out 150.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Corporate Office Properties Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Corporate Office Properties Trust beats Hudson Pacific Properties on 8 of the 14 factors compared between the two stocks.
Corporate Office Properties Trust Company Profile
Corporate Office Properties Trust is a fully-integrated and self-managed real estate investment trust (REIT). The Company owns, manages, leases, develops and acquires office and data center properties. The Company’s segments are Defense/IT Locations; Regional Office; operating wholesale data center, and other. As of December 31, 2016, the Company’s properties included 164 operating office properties totaling 17.2 million square feet, including 13 triple-net leased, single-tenant data center properties; 11 office properties under construction or redevelopment; 1,028 acres of land controlled for future development, and a wholesale data center with a critical load of 19.25 megawatts. The Company conducts all of its operations through Corporate Office Properties, L.P. (COPLP) and subsidiaries (collectively, the Operating Partnership). COPLP owns real estate both directly and through subsidiary partnerships and limited liability companies (LLCs).
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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