Hudson Pacific Properties (NYSE: HPP) and TIER REIT (OTCMKTS:TIER) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Hudson Pacific Properties 7.87% 1.37% 0.79%
TIER REIT 174.73% 59.24% 25.37%

Dividends

Hudson Pacific Properties pays an annual dividend of $1.00 per share and has a dividend yield of 3.0%. TIER REIT does not pay a dividend. 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.

Earnings and Valuation

This table compares Hudson Pacific Properties and TIER REIT’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hudson Pacific Properties $680.57 million 7.52 $289.13 million $0.36 91.50
TIER REIT $220.99 million 3.97 $99.25 million N/A N/A

Hudson Pacific Properties has higher revenue and earnings than TIER REIT.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Hudson Pacific Properties and TIER REIT, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hudson Pacific Properties 0 2 6 0 2.75
TIER REIT 0 0 2 0 3.00

Hudson Pacific Properties presently has a consensus price target of $38.21, indicating a potential upside of 16.01%. TIER REIT has a consensus price target of $20.50, indicating a potential upside of 11.78%. Given Hudson Pacific Properties’ higher probable upside, analysts plainly believe Hudson Pacific Properties is more favorable than TIER REIT.

Summary

Hudson Pacific Properties beats TIER REIT on 7 of the 12 factors compared between the two stocks.

About Hudson Pacific Properties

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.

About TIER REIT

TIER REIT, Inc. is a real estate investment trust. The Company’s business consists of owning, acquiring, developing, operating, investing in, and disposing of real estate assets. The Company’s business is conducted through Tier Operating Partnership LP (Tier OP). As of December 31, 2016, the Company owned interests in 29 operating office properties, one non-operating property and one development property located in 13 markets throughout the United States. It owns properties located in metropolitan cities and suburban markets in the United States. The Company’s office properties include The Terrace Office Park, Domain 3, Domain 4, 5950 Sherry Lane, Burnett Plaza, Loop Central, One BriarLake Plaza, Three Eldridge Place, Eisenhower I, Forum Office Park, 500 E. Pratt, Woodcrest Corporate Center and 111 Woodcrest. The Company’s properties are located in Austin, Dallas, Houston, Charlotte, Nashville, Atlanta and Denver.

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