Service Properties Trust (NASDAQ:SVC – Get Free Report) and Hudson Pacific Properties (NYSE:HPP – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.
Risk & Volatility
Service Properties Trust has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, Hudson Pacific Properties has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for Service Properties Trust and Hudson Pacific Properties, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Service Properties Trust | 1 | 2 | 1 | 0 | 2.00 |
| Hudson Pacific Properties | 2 | 7 | 4 | 1 | 2.29 |
Valuation and Earnings
This table compares Service Properties Trust and Hudson Pacific Properties”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Service Properties Trust | $1.81 billion | 0.14 | -$202.32 million | ($1.21) | -1.29 |
| Hudson Pacific Properties | $831.10 million | 0.61 | -$561.69 million | ($12.99) | -0.72 |
Service Properties Trust has higher revenue and earnings than Hudson Pacific Properties. Service Properties Trust is trading at a lower price-to-earnings ratio than Hudson Pacific Properties, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
77.6% of Service Properties Trust shares are owned by institutional investors. Comparatively, 97.6% of Hudson Pacific Properties shares are owned by institutional investors. 1.6% of Service Properties Trust shares are owned by insiders. Comparatively, 4.9% of Hudson Pacific Properties shares 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.
Profitability
This table compares Service Properties Trust and Hudson Pacific Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Service Properties Trust | -11.15% | -29.70% | -2.96% |
| Hudson Pacific Properties | -69.12% | -19.89% | -7.37% |
Summary
Hudson Pacific Properties beats Service Properties Trust on 10 of the 15 factors compared between the two stocks.
About Service Properties Trust
Service Properties Trust (Nasdaq: SVC) is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of December 31, 2023, SVC also owned 752 service-focused retail net lease properties totaling approximately 13.3 million square feet throughout the United States. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA.
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.
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