Head to Head Analysis: Hudson Pacific Properties (HPP) vs. Its Competitors
Hudson Pacific Properties (NYSE: HPP) is one of 20 publicly-traded companies in the “Office REITs” industry, but how does it contrast to its peers? We will compare Hudson Pacific Properties to related companies based on the strength of its risk, profitability, valuation, dividends, earnings, analyst recommendations and institutional ownership.
Valuation and Earnings
This table compares Hudson Pacific Properties and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Hudson Pacific Properties||$680.57 million||$289.13 million||92.31|
|Hudson Pacific Properties Competitors||$672.08 million||$356.91 million||59.90|
Hudson Pacific Properties has higher revenue, but lower earnings than its peers. Hudson Pacific Properties is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Risk and Volatility
Hudson Pacific Properties has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500. Comparatively, Hudson Pacific Properties’ peers have a beta of 0.90, meaning that their average share price is 10% less volatile than the S&P 500.
This table compares Hudson Pacific Properties and its peers’ 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%|
This is a breakdown of recent ratings for Hudson Pacific Properties and its peers, as reported by MarketBeat.
|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||641||623||10||2.32|
Hudson Pacific Properties presently has a consensus price target of $38.06, indicating a potential upside of 14.54%. As a group, “Office REITs” companies have a potential upside of 7.45%. Given Hudson Pacific Properties’ stronger consensus rating and higher possible upside, equities analysts plainly believe Hudson Pacific Properties is more favorable than its peers.
Institutional and Insider Ownership
85.4% of shares of all “Office REITs” companies are owned by institutional investors. 13.4% of Hudson Pacific Properties shares are owned by insiders. Comparatively, 2.8% of shares of all “Office REITs” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Hudson Pacific Properties pays an annual dividend of $1.00 per share and has a dividend yield of 3.0%. 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 3.3% and pay out 249.2% of their earnings in the form of a dividend. Hudson Pacific Properties lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.
Hudson Pacific Properties peers beat Hudson Pacific Properties on 8 of the 15 factors compared.
About Hudson Pacific Properties
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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