Hudson Pacific Properties (NYSE:HPP) vs. Douglas Emmett (NYSE:DEI) Critical Survey

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

Institutional & Insider Ownership

97.4% of Douglas Emmett shares are held by institutional investors. Comparatively, 97.6% of Hudson Pacific Properties shares are held by institutional investors. 13.0% of Douglas Emmett shares are held by insiders. Comparatively, 2.5% of Hudson Pacific Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Douglas Emmett and Hudson Pacific Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Douglas Emmett	1	6	1	0	2.00
Hudson Pacific Properties	3	7	3	0	2.00

Douglas Emmett currently has a consensus price target of $13.14, suggesting a potential upside of 31.23%. Hudson Pacific Properties has a consensus price target of $15.27, suggesting a potential upside of 73.26%. Given Hudson Pacific Properties’ higher probable upside, analysts clearly believe Hudson Pacific Properties is more favorable than Douglas Emmett.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Douglas Emmett	-2.04%	-0.60%	-0.22%
Hudson Pacific Properties	-80.01%	-25.07%	-9.02%

Risk and Volatility

Douglas Emmett has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Hudson Pacific Properties has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500.

Valuation and Earnings

This table compares Douglas Emmett 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
Douglas Emmett	$1.00 billion	1.67	$16.27 million	($0.13)	-77.04
Hudson Pacific Properties	$831.10 million	0.58	-$561.69 million	($10.13)	-0.87

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.

Summary

Douglas Emmett beats Hudson Pacific Properties on 8 of the 13 factors compared between the two stocks.

About Douglas Emmett

Douglas Emmett, Inc. is a real estate investment trust (REIT) that owns, operates and acquires office and multifamily properties. Its portfolio is concentrated in established neighborhoods in Los Angeles and Honolulu, with properties serving businesses and residents in those markets. The company focuses on office buildings and apartment communities in areas including West Los Angeles and Honolulu. Its business includes managing and leasing its properties, as well as pursuing acquisitions and other opportunities to grow and maintain its portfolio.

About Hudson Pacific Properties

Hudson Pacific Properties is a real estate investment trust that owns, operates and develops office and studio properties. Its office buildings serve businesses in sectors such as technology, media and entertainment, while its studio facilities provide sound stages and production space for film and television work. The company’s properties are concentrated in major West Coast markets, including Los Angeles, the San Francisco Bay Area and Seattle, as well as Vancouver, British Columbia. Its studio platform, Sunset Studios, supports production activity with purpose-built facilities and related services.