Parkway Properties (NYSE: PKY) and Hudson Pacific Properties (NYSE:HPP) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Parkway Properties N/A -2.94% -1.49%
Hudson Pacific Properties 7.87% 1.37% 0.79%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Parkway Properties and Hudson Pacific Properties, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Parkway Properties 0 7 1 0 2.13
Hudson Pacific Properties 0 2 6 0 2.75

Parkway Properties presently has a consensus price target of $21.00, suggesting a potential downside of 8.58%. Hudson Pacific Properties has a consensus price target of $38.07, suggesting a potential upside of 19.99%. Given Hudson Pacific Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Hudson Pacific Properties is more favorable than Parkway Properties.

Insider & Institutional Ownership

96.2% of Parkway Properties shares are held by institutional investors. 7.9% of Parkway Properties shares are held by company insiders. Comparatively, 13.4% of Hudson Pacific Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Parkway Properties has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Hudson Pacific Properties has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Valuation and Earnings

This table compares Parkway Properties and Hudson Pacific Properties’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Parkway Properties $213.81 million 5.29 $77.41 million N/A N/A
Hudson Pacific Properties $680.57 million 7.28 $289.13 million $0.36 88.14

Hudson Pacific Properties has higher revenue and earnings than Parkway Properties.

Dividends

Parkway Properties pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. Hudson Pacific Properties pays an annual dividend of $1.00 per share and has a dividend yield of 3.2%. Hudson Pacific Properties pays out 277.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Hudson Pacific Properties beats Parkway Properties on 11 of the 14 factors compared between the two stocks.

Parkway Properties Company Profile

Parkway, Inc. is a self-managed real estate investment trust (REIT). The Company owns and operates office properties located in submarkets in Houston, Texas. As of December 31, 2016, the Company’s portfolio consisted of five Class A assets comprising 19 buildings and totaling approximately 8.7 million rentable square feet in the Greenway, Galleria and Westchase submarkets of Houston. In addition, the Company operates a fee-based real estate service (the Third-Party Services Business) through a subsidiary, Eola Office Partners, LLC and its subsidiaries (collectively, Eola), which in total managed approximately 3.8 million square feet (unaudited) for primarily third-party owners, as of December 31, 2016. The Company’s properties include CityWestPlace, San Felipe Plaza, Phoenix Tower, Greenway Plaza and Post Oak Central.

Hudson Pacific Properties Company Profile

Hudson Pacific Properties, Inc. is a real estate investment trust (REIT). The Company operates in two segments: office properties, and media and entertainment properties. The Company is focused on acquiring, repositioning, developing and operating office and media and entertainment properties in submarkets throughout Northern and Southern California and the Pacific Northwest. As of December 31, 2016, the Company’s portfolio included office properties consisting of an aggregate of approximately 14.1 million square feet, and media and entertainment properties consisting of approximately 0.9 million square feet of sound-stage, office and supporting production facilities. As of December 31, 2016, the Company also owned undeveloped density rights for approximately 2.5 million square feet of future office and residential space. The Company’s in-service office properties include stabilized office properties and lease-up office properties.

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