Altisource Residential (NYSE: RESI) and Hudson Pacific Properties (NYSE:HPP) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.
Volatility and Risk
Altisource Residential has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Hudson Pacific Properties has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Altisource Residential and Hudson Pacific Properties, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hudson Pacific Properties||0||3||5||0||2.63|
Altisource Residential currently has a consensus target price of $16.00, indicating a potential upside of 64.10%. Hudson Pacific Properties has a consensus target price of $36.88, indicating a potential upside of 17.10%. Given Altisource Residential’s stronger consensus rating and higher probable upside, equities analysts clearly believe Altisource Residential is more favorable than Hudson Pacific Properties.
Altisource Residential pays an annual dividend of $0.60 per share and has a dividend yield of 6.2%. 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 50.3% of its earnings in the form of a dividend. Altisource Residential has increased its dividend for 4 consecutive years and Hudson Pacific Properties has increased its dividend for 2 consecutive years. Altisource Residential is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Altisource Residential and Hudson Pacific Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hudson Pacific Properties||10.14%||1.81%||1.06%|
Earnings and Valuation
This table compares Altisource Residential and Hudson Pacific Properties’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Altisource Residential||$94.17 million||5.53||-$185.45 million||N/A||N/A|
|Hudson Pacific Properties||$728.14 million||6.78||$67.96 million||$1.99||15.82|
Hudson Pacific Properties has higher revenue and earnings than Altisource Residential.
Insider & Institutional Ownership
79.3% of Altisource Residential shares are held by institutional investors. 0.5% of Altisource Residential shares are held by company insiders. Comparatively, 1.9% 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 will outperform the market over the long term.
Hudson Pacific Properties beats Altisource Residential on 8 of the 15 factors compared between the two stocks.
About Altisource Residential
Front Yard Residential Corporation, formerly Altisource Residential Corporation, is a real estate investment trust (REIT). The Company focuses on acquiring, owning and managing single-family rental (SFR) properties throughout the United States. The Company conducts its activities through its subsidiary, Altisource Residential, L.P., and its subsidiaries. The Company also converts a portion of the real estate owned (REO) properties that it acquires through resolution of its mortgage loans into SFR properties. The Company has also entered into property management service agreements with two third-party property managers: Altisource Portfolio Solutions, SA (ASPS) and Main Street Renewal, LLC (MSR), to provide, among other things, leasing and lease management, operations, maintenance, repair and property management services in respect of its SFR portfolios. The Company had 10,533 properties, consisting of 9,939 properties held for use and 594 held for sale.
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.
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