Head to Head Review: Parkway Properties (PKY) and Hudson Pacific Properties (HPP)
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 earnings, risk, dividends, analyst recommendations, profitabiliy, institutional ownership and valuation.
Valuation & 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||5.31||$77.41 million||N/A||N/A|
|Hudson Pacific Properties||$654.39 million||7.67||$269.94 million||$0.36||89.31|
Hudson Pacific Properties has higher revenue and earnings than Parkway Properties.
This is a breakdown of current ratings and target prices for Parkway Properties and Hudson Pacific Properties, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hudson Pacific Properties||0||2||6||0||2.75|
Parkway Properties presently has a consensus target price of $21.00, indicating a potential downside of 8.89%. Hudson Pacific Properties has a consensus target price of $38.07, indicating a potential upside of 18.42%. Given Hudson Pacific Properties’ stronger consensus rating and higher possible upside, analysts clearly believe Hudson Pacific Properties is more favorable than Parkway Properties.
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 3.1%. 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.
Volatility & Risk
Parkway Properties has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Hudson Pacific Properties has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.
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|
|Hudson Pacific Properties||7.87%||1.39%||0.80%|
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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.
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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