Head to Head Analysis: Omega Healthcare Investors (NYSE:OHI) and Hudson Pacific Properties (NYSE:HPP)

Hudson Pacific Properties (NYSE:HPP) and Omega Healthcare Investors (NYSE:OHI) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Risk & Volatility

Hudson Pacific Properties has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, Omega Healthcare Investors has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hudson Pacific Properties	$831.11 million	0.37	-$561.69 million	($12.99)	-0.44
Omega Healthcare Investors	$1.19 billion	11.09	$572.03 million	$1.93	23.13

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hudson Pacific Properties	-69.12%	-19.89%	-7.37%
Omega Healthcare Investors	49.59%	11.35%	5.77%

Dividends

Hudson Pacific Properties pays an annual dividend of $0.10 per share and has a dividend yield of 1.8%. Omega Healthcare Investors pays an annual dividend of $2.68 per share and has a dividend yield of 6.0%. Hudson Pacific Properties pays out -0.8% of its earnings in the form of a dividend. Omega Healthcare Investors pays out 138.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Hudson Pacific Properties and Omega Healthcare Investors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hudson Pacific Properties	2	8	4	0	2.14
Omega Healthcare Investors	0	7	5	1	2.54

Hudson Pacific Properties currently has a consensus target price of $13.74, indicating a potential upside of 141.29%. Omega Healthcare Investors has a consensus target price of $47.82, indicating a potential upside of 7.10%. Given Hudson Pacific Properties’ higher probable upside, analysts clearly believe Hudson Pacific Properties is more favorable than Omega Healthcare Investors.

Insider & Institutional Ownership

97.6% of Hudson Pacific Properties shares are owned by institutional investors. Comparatively, 65.3% of Omega Healthcare Investors shares are owned by institutional investors. 3.9% of Hudson Pacific Properties shares are owned by insiders. Comparatively, 1.5% of Omega Healthcare Investors 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

Omega Healthcare Investors beats Hudson Pacific Properties on 12 of the 17 factors compared between the two stocks.

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.

About Omega Healthcare Investors

Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitation and acute care facilities, and medical office buildings. The company was founded on March 31, 1992 and is headquartered in Hunt Valley, MD.