Financial Analysis: Mackenzie Realty Capital (NASDAQ:MKZR) versus Hudson Pacific Properties (NYSE:HPP)

Hudson Pacific Properties (NYSE:HPP – Get Free Report) and Mackenzie Realty Capital (NASDAQ:MKZR – Get Free Report) are both small-cap real estate companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Risk and Volatility

Hudson Pacific Properties has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500. Comparatively, Mackenzie Realty Capital has a beta of -0.45, indicating that its stock price is 145% less volatile than the S&P 500.

Institutional & Insider Ownership

97.6% of Hudson Pacific Properties shares are held by institutional investors. 2.5% of Hudson Pacific Properties shares are held by insiders. Comparatively, 9.0% of Mackenzie Realty Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Hudson Pacific Properties and Mackenzie Realty Capital”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hudson Pacific Properties $812.79 million 0.73 -$561.69 million ($8.85) -1.23
Mackenzie Realty Capital $20.01 million 0.15 -$17.54 million ($9.53) -0.12

Mackenzie Realty Capital has lower revenue, but higher earnings than Hudson Pacific Properties. Hudson Pacific Properties is trading at a lower price-to-earnings ratio than Mackenzie Realty Capital, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hudson Pacific Properties and Mackenzie Realty Capital’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%
Mackenzie Realty Capital -82.40% -19.33% -6.91%

Analyst Recommendations

This is a breakdown of recent recommendations for Hudson Pacific Properties and Mackenzie Realty Capital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hudson Pacific Properties 3 7 3 0 2.00
Mackenzie Realty Capital 1 0 0 0 1.00

Hudson Pacific Properties presently has a consensus target price of $15.27, suggesting a potential upside of 40.05%. Given Hudson Pacific Properties’ stronger consensus rating and higher possible upside, equities analysts plainly believe Hudson Pacific Properties is more favorable than Mackenzie Realty Capital.

Summary

Hudson Pacific Properties beats Mackenzie Realty Capital on 9 of the 14 factors compared between the two stocks.

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.

About Mackenzie Realty Capital

(Get Free Report)

MacKenzie Realty Capital Inc. is a REIT which focused on investing in multifamily housing and office real estate properties located principally in the United States. MacKenzie Realty Capital Inc. is based in ORINDA, Calif.

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