Comparing Hudson Pacific Properties (NYSE:HPP) & Sabra Healthcare REIT (NASDAQ:SBRA)

Sabra Healthcare REIT (NASDAQ:SBRA) and Hudson Pacific Properties (NYSE:HPP) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Volatility and Risk

Sabra Healthcare REIT has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Hudson Pacific Properties has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.

Profitability

This table compares Sabra Healthcare REIT and Hudson Pacific Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sabra Healthcare REIT	20.09%	5.63%	2.88%
Hudson Pacific Properties	-69.12%	-19.89%	-7.37%

Analyst Recommendations

This is a breakdown of recent ratings for Sabra Healthcare REIT and Hudson Pacific Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sabra Healthcare REIT	0	5	4	1	2.60
Hudson Pacific Properties	2	8	4	0	2.14

Sabra Healthcare REIT presently has a consensus target price of $22.00, indicating a potential upside of 14.40%. Hudson Pacific Properties has a consensus target price of $13.49, indicating a potential upside of 128.09%. Given Hudson Pacific Properties’ higher possible upside, analysts clearly believe Hudson Pacific Properties is more favorable than Sabra Healthcare REIT.

Insider & Institutional Ownership

99.4% of Sabra Healthcare REIT shares are owned by institutional investors. Comparatively, 97.6% of Hudson Pacific Properties shares are owned by institutional investors. 1.1% of Sabra Healthcare REIT shares are owned by company insiders. Comparatively, 3.9% of Hudson Pacific Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Sabra Healthcare REIT and Hudson Pacific Properties”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sabra Healthcare REIT	$774.63 million	6.26	$155.61 million	$0.64	30.05
Hudson Pacific Properties	$831.10 million	0.39	-$561.69 million	($12.99)	-0.46

Sabra Healthcare REIT has higher earnings, but lower revenue than Hudson Pacific Properties. Hudson Pacific Properties is trading at a lower price-to-earnings ratio than Sabra Healthcare REIT, indicating that it is currently the more affordable of the two stocks.

Summary

Sabra Healthcare REIT beats Hudson Pacific Properties on 10 of the 14 factors compared between the two stocks.

About Sabra Healthcare REIT

Sabra Health Care REIT, Inc. engages in the business of acquiring, financing, and owning real estate property. The company was founded on May 10, 2010 and is headquartered in Tustin, CA.

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.