Hudson Pacific Properties (NYSE:HPP) vs. Douglas Emmett (NYSE:DEI) Head-To-Head Review

Hudson Pacific Properties (NYSE:HPP) and Douglas Emmett (NYSE:DEI) are both small-cap real estate companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Hudson Pacific Properties and Douglas Emmett, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hudson Pacific Properties	3	7	3	0	2.00
Douglas Emmett	1	7	1	0	2.00

Hudson Pacific Properties currently has a consensus price target of $14.32, suggesting a potential upside of 2.04%. Douglas Emmett has a consensus price target of $13.57, suggesting a potential upside of 13.36%. Given Douglas Emmett’s higher possible upside, analysts plainly believe Douglas Emmett is more favorable than Hudson Pacific Properties.

Valuation & Earnings

This table compares Hudson Pacific Properties and Douglas Emmett”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hudson Pacific Properties	$831.10 million	0.92	-$561.69 million	($10.10)	-1.39
Douglas Emmett	$1.00 billion	2.00	$16.27 million	($0.17)	-70.42

Douglas Emmett has higher revenue and earnings than Hudson Pacific Properties. Douglas Emmett 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.

Risk and Volatility

Hudson Pacific Properties has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500. Comparatively, Douglas Emmett has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Institutional & Insider Ownership

97.6% of Hudson Pacific Properties shares are held by institutional investors. Comparatively, 97.4% of Douglas Emmett shares are held by institutional investors. 2.5% of Hudson Pacific Properties shares are held by company insiders. Comparatively, 13.0% of Douglas Emmett shares are held by company 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.

Profitability

This table compares Hudson Pacific Properties and Douglas Emmett’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hudson Pacific Properties	-67.89%	-19.05%	-7.27%
Douglas Emmett	-2.59%	-0.74%	-0.28%

Summary

Douglas Emmett beats Hudson Pacific Properties on 9 of the 13 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 Douglas Emmett

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.