Critical Review: Griffin Industrial Realty (GRIF) versus Hudson Pacific Properties (HPP)

Griffin Industrial Realty (NASDAQ:GRIF) and Hudson Pacific Properties (NYSE:HPP) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Risk & Volatility

Griffin Industrial Realty has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Hudson Pacific Properties has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.

Earnings and Valuation

This table compares Griffin Industrial Realty and Hudson Pacific Properties’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Griffin Industrial Realty $43.88 million 4.43 $4.62 million N/A N/A
Hudson Pacific Properties $728.14 million 6.59 $67.96 million $1.99 15.39

Hudson Pacific Properties has higher revenue and earnings than Griffin Industrial Realty.

Dividends

Griffin Industrial Realty pays an annual dividend of $0.40 per share and has a dividend yield of 1.0%. Hudson Pacific Properties pays an annual dividend of $1.00 per share and has a dividend yield of 3.3%. Hudson Pacific Properties pays out 50.3% of its earnings in the form of a dividend. Hudson Pacific Properties has increased its dividend for 2 consecutive years. Hudson Pacific Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Griffin Industrial Realty and Hudson Pacific Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Griffin Industrial Realty -1.53% 0.48% 0.18%
Hudson Pacific Properties 15.29% 2.76% 1.64%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Griffin Industrial Realty and Hudson Pacific Properties, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Griffin Industrial Realty 0 0 0 0 N/A
Hudson Pacific Properties 0 4 5 0 2.56

Hudson Pacific Properties has a consensus target price of $38.00, indicating a potential upside of 24.06%. Given Hudson Pacific Properties’ higher possible upside, analysts clearly believe Hudson Pacific Properties is more favorable than Griffin Industrial Realty.

Insider and Institutional Ownership

46.7% of Griffin Industrial Realty shares are owned by institutional investors. 28.0% of Griffin Industrial Realty shares are owned by insiders. Comparatively, 1.9% of Hudson Pacific Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Hudson Pacific Properties beats Griffin Industrial Realty on 10 of the 15 factors compared between the two stocks.

About Griffin Industrial Realty

Griffin Industrial Realty, Inc. develops, manages, and leases industrial and commercial properties in the United States. As of November 30, 2017, the company owned 35 buildings comprising 23 industrial/warehouse buildings, 11 office/flex buildings, and a restaurant building. It also owns approximately 2,791 acres of land in Connecticut, as well as owns approximately 346 acres of land in Massachusetts, 131 acres of land in Pennsylvania, 18 acres in North Carolina, and 1,066 acres in northern Florida. The company was formerly known as Griffin Land & Nurseries, Inc. and changed its name to Griffin Industrial Realty, Inc. in May 2015. Griffin Industrial Realty, Inc. was founded in 1970 and is headquartered in New York City, New York.

About Hudson Pacific Properties

Hudson Pacific Properties is a vertically integrated real estate Company focused on acquiring, repositioning, developing and operating high-quality office and state-of-the-art studio properties in select West Coast markets. Hudson Pacific invests across the risk-return spectrum, favoring opportunities where it can employ leasing, capital investment and management expertise to create value. Founded in 2006 as Hudson Capital, the Company went public in 2010, electing to be taxed as a real estate investment trust. Through the years, Hudson Pacific has strategically assembled a portfolio in high-growth, high-barrier-to-entry submarkets throughout Northern and Southern California and the Pacific Northwest. The Company is a leading provider of design-forward, next-generation workspaces for a variety of tenants, with a focus on Fortune 500 and industry-leading growth companies, many in the technology, studio sectors. As a long-term owner, Hudson Pacific prioritizes tenant satisfaction and retention, providing highly customized build-outs and working proactively to accommodate tenants' growth. Hudson Pacific trades as a component of the Russell 2000® and the Russell 3000® indices.

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