Comparing Service Properties Trust (NASDAQ:SVC) & Hudson Pacific Properties (NYSE:HPP)

Service Properties Trust (NASDAQ:SVCGet Free Report) and Hudson Pacific Properties (NYSE:HPPGet 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

Service Properties Trust presently has a consensus target price of $2.00, indicating a potential upside of 28.21%. Hudson Pacific Properties has a consensus target price of $14.11, indicating a potential upside of 51.20%. Given Hudson Pacific Properties’ stronger consensus rating and higher possible upside, analysts clearly believe Hudson Pacific Properties is more favorable than Service Properties Trust.

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

(Get Free Report)

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

(Get Free Report)

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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