Hudson Pacific Properties (NYSE:HPP) and Alexandria Real Estate Equities (NYSE:ARE) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Institutional and Insider Ownership
99.1% of Hudson Pacific Properties shares are held by institutional investors. Comparatively, 87.6% of Alexandria Real Estate Equities shares are held by institutional investors. 2.4% of Hudson Pacific Properties shares are held by insiders. Comparatively, 1.1% of Alexandria Real Estate Equities shares are held 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.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Hudson Pacific Properties and Alexandria Real Estate Equities, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Hudson Pacific Properties | 0 | 6 | 4 | 0 | 2.40 |
Alexandria Real Estate Equities | 0 | 1 | 6 | 0 | 2.86 |
Hudson Pacific Properties presently has a consensus price target of $26.50, suggesting a potential upside of 3.56%. Alexandria Real Estate Equities has a consensus price target of $160.8750, suggesting a potential upside of 0.74%. Given Hudson Pacific Properties' higher probable upside, analysts plainly believe Hudson Pacific Properties is more favorable than Alexandria Real Estate Equities.
Earnings & Valuation
This table compares Hudson Pacific Properties and Alexandria Real Estate Equities' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Hudson Pacific Properties | $818.18 million | 4.72 | $44.49 million | $2.03 | 12.61 |
Alexandria Real Estate Equities | $1.53 billion | 14.25 | $363.17 million | $6.96 | 22.94 |
Alexandria Real Estate Equities has higher revenue and earnings than Hudson Pacific Properties. Hudson Pacific Properties is trading at a lower price-to-earnings ratio than Alexandria Real Estate Equities, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Hudson Pacific Properties has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Alexandria Real Estate Equities has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.
Dividends
Hudson Pacific Properties pays an annual dividend of $1.00 per share and has a dividend yield of 3.9%. Alexandria Real Estate Equities pays an annual dividend of $4.36 per share and has a dividend yield of 2.7%. Hudson Pacific Properties pays out 49.3% of its earnings in the form of a dividend. Alexandria Real Estate Equities pays out 62.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Alexandria Real Estate Equities has raised its dividend for 10 consecutive years. Hudson Pacific Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Hudson Pacific Properties and Alexandria Real Estate Equities' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Hudson Pacific Properties | 2.76% | 0.61% | 0.29% |
Alexandria Real Estate Equities | 29.07% | 4.79% | 2.66% |
Summary
Alexandria Real Estate Equities beats Hudson Pacific Properties on 10 of the 17 factors compared between the two stocks.