Head-To-Head Analysis: Postal Realty Trust (NYSE:PSTL) & Hudson Pacific Properties (NYSE:HPP)

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

Insider and Institutional Ownership

97.6% of Hudson Pacific Properties shares are held by institutional investors. Comparatively, 57.9% of Postal Realty Trust shares are held by institutional investors. 2.5% of Hudson Pacific Properties shares are held by company insiders. Comparatively, 12.5% of Postal Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Hudson Pacific Properties and Postal Realty Trust’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%
Postal Realty Trust	16.42%	4.63%	2.22%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hudson Pacific Properties	$831.10 million	0.79	-$561.69 million	($8.85)	-1.36
Postal Realty Trust	$95.82 million	6.90	$14.15 million	$0.54	44.34

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Hudson Pacific Properties and Postal Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hudson Pacific Properties	3	6	4	0	2.08
Postal Realty Trust	0	2	6	0	2.75

Hudson Pacific Properties presently has a consensus target price of $15.82, indicating a potential upside of 30.99%. Postal Realty Trust has a consensus target price of $25.38, indicating a potential upside of 5.98%. Given Hudson Pacific Properties’ higher probable upside, analysts clearly believe Hudson Pacific Properties is more favorable than Postal Realty Trust.

Risk & Volatility

Hudson Pacific Properties has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500. Comparatively, Postal Realty Trust has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.

Summary

Postal Realty Trust beats Hudson Pacific Properties on 10 of the 14 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 Postal Realty Trust

Postal Realty Trust, Inc. (NYSE: PSTL) is an internally managed real estate investment trust that owns properties primarily leased to the United States Postal Service ("USPS"). PSTL is focused on acquiring the network of USPS properties, which provide a critical element of the nation's logistics infrastructure that facilitates cost effective and efficient last-mile delivery solutions. As of December 31, 2023, PSTL owned 1,509 properties (including two properties accounted for as financing leases) located in 49 states and one territory comprising approximately 5.9 million net leasable interior square feet. Subsequent to quarter-end and through February 23, 2024, PSTL closed on eight additional properties comprising approximately 33,000 net leasable interior square feet.