Financial Review: Hudson Pacific Properties (HPP) versus The Competition
Hudson Pacific Properties (NYSE: HPP) is one of 20 public companies in the “Office REITs” industry, but how does it compare to its competitors? We will compare Hudson Pacific Properties to similar businesses based on the strength of its dividends, valuation, profitability, institutional ownership, earnings, analyst recommendations and risk.
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%|
Hudson Pacific Properties pays an annual dividend of $1.00 per share and has a dividend yield of 3.1%. 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 3.5% 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.
Volatility and Risk
Hudson Pacific Properties has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, Hudson Pacific Properties’ competitors have a beta of 0.91, indicating that their average share price is 9% less volatile than the S&P 500.
Earnings & Valuation
This table compares Hudson Pacific Properties and its competitors revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Hudson Pacific Properties||$680.57 million||$289.13 million||88.78|
|Hudson Pacific Properties Competitors||$672.08 million||$356.91 million||58.41|
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 & Insider Ownership
85.9% of shares of all “Office REITs” companies are owned by institutional investors. 13.4% of Hudson Pacific Properties shares are owned by company insiders. Comparatively, 3.2% of shares of all “Office REITs” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a breakdown of current ratings 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||173||633||610||10||2.32|
Hudson Pacific Properties currently has a consensus target price of $37.93, indicating a potential upside of 18.68%. As a group, “Office REITs” companies have a potential upside of 10.50%. Given Hudson Pacific Properties’ stronger consensus rating and higher probable upside, equities analysts clearly believe Hudson Pacific Properties is more favorable than its competitors.
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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