Comparing Orion Office REIT (NYSE:ONL) & Hudson Pacific Properties (NYSE:HPP)

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

Risk & Volatility

Hudson Pacific Properties has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500. Comparatively, Orion Office REIT has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.

Insider and Institutional Ownership

97.6% of Hudson Pacific Properties shares are owned by institutional investors. Comparatively, 79.9% of Orion Office REIT shares are owned by institutional investors. 2.5% of Hudson Pacific Properties shares are owned by company insiders. Comparatively, 1.6% of Orion Office REIT shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Hudson Pacific Properties and Orion Office REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hudson Pacific Properties	-70.04%	-20.76%	-7.73%
Orion Office REIT	-65.66%	-14.85%	-7.95%

Valuation & Earnings

This table compares Hudson Pacific Properties and Orion Office REIT”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	0.55	-$561.69 million	($8.85)	-0.95
Orion Office REIT	$147.65 million	1.03	-$139.31 million	($1.69)	-1.58

Orion Office REIT has lower revenue, but higher earnings than Hudson Pacific Properties. Orion Office REIT 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Hudson Pacific Properties and Orion Office REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hudson Pacific Properties	3	7	3	0	2.00
Orion Office REIT	1	0	1	0	2.00

Hudson Pacific Properties currently has a consensus target price of $15.27, suggesting a potential upside of 81.17%. Orion Office REIT has a consensus target price of $3.50, suggesting a potential upside of 31.33%. Given Hudson Pacific Properties’ higher possible upside, equities research analysts clearly believe Hudson Pacific Properties is more favorable than Orion Office REIT.

Summary

Hudson Pacific Properties beats Orion Office REIT on 8 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 Orion Office REIT

Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.