Head to Head Contrast: Orion Office REIT (NYSE:ONL) and Hudson Pacific Properties (NYSE:HPP)

Orion Office REIT (NYSE:ONL) and Hudson Pacific Properties (NYSE:HPP) are both small-cap real estate companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.

Insider & Institutional Ownership

79.9% of Orion Office REIT shares are held by institutional investors. Comparatively, 97.6% of Hudson Pacific Properties shares are held by institutional investors. 1.6% of Orion Office REIT shares are held by company insiders. Comparatively, 2.5% of Hudson Pacific Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Orion Office REIT	-65.66%	-14.85%	-7.95%
Hudson Pacific Properties	-70.04%	-20.76%	-7.73%

Earnings and Valuation

This table compares Orion Office REIT and Hudson Pacific Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orion Office REIT	$147.65 million	1.03	-$139.31 million	($1.69)	-1.58
Hudson Pacific Properties	$831.10 million	0.55	-$561.69 million	($8.85)	-0.95

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

Risk & Volatility

Orion Office REIT has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500. Comparatively, Hudson Pacific Properties has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Orion Office REIT and Hudson Pacific Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orion Office REIT	1	0	1	0	2.00
Hudson Pacific Properties	3	7	3	0	2.00

Orion Office REIT currently has a consensus target price of $3.50, suggesting a potential upside of 31.33%. Hudson Pacific Properties has a consensus target price of $15.27, suggesting a potential upside of 81.17%. Given Hudson Pacific Properties’ higher probable upside, analysts plainly believe Hudson Pacific Properties is more favorable than Orion Office REIT.

Summary

Hudson Pacific Properties beats Orion Office REIT on 8 of the 13 factors compared between the two stocks.

About Orion Office REIT

Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.

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.