Comparing Hudson Pacific Properties (NYSE:HPP) and Kilroy Realty (NYSE:KRC)

Hudson Pacific Properties (NYSE:HPP) and Kilroy Realty (NYSE:KRC) are both real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, risk, profitability, analyst recommendations, valuation, earnings and dividends.

Risk and Volatility

Hudson Pacific Properties has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500. Comparatively, Kilroy Realty has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Valuation and Earnings

This table compares Hudson Pacific Properties and Kilroy Realty”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hudson Pacific Properties	$831.10 million	0.95	-$561.69 million	($8.85)	-1.64
Kilroy Realty	$1.11 billion	3.82	$276.12 million	$1.42	25.72

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

Insider & Institutional Ownership

97.6% of Hudson Pacific Properties shares are held by institutional investors. Comparatively, 94.2% of Kilroy Realty shares are held by institutional investors. 2.5% of Hudson Pacific Properties shares are held by insiders. Comparatively, 0.8% of Kilroy Realty shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Hudson Pacific Properties and Kilroy Realty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hudson Pacific Properties	3	5	4	1	2.23
Kilroy Realty	2	9	5	0	2.19

Hudson Pacific Properties currently has a consensus target price of $15.57, suggesting a potential upside of 7.36%. Kilroy Realty has a consensus target price of $39.13, suggesting a potential upside of 7.16%. Given Hudson Pacific Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Hudson Pacific Properties is more favorable than Kilroy Realty.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hudson Pacific Properties	-70.04%	-20.76%	-7.73%
Kilroy Realty	15.47%	3.04%	1.56%

Summary

Kilroy Realty beats Hudson Pacific Properties on 9 of the 15 factors compared between the two stocks.

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.

About Kilroy Realty

Kilroy Realty Corporation (NYSE: KRC, the company, Kilroy) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin. The company has earned global recognition for sustainability, building operations, innovation and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity and productivity for some of the world's leading technology, entertainment, life science and business services companies. The company is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects. As of December 31, 2023, Kilroy's stabilized portfolio totaled approximately 17.0 million square feet of primarily office and life science space that was 85.0% occupied and 86.4% leased. The company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.5%. In addition, the company had two in-process life science redevelopment projects totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one approximately 875,000 square foot in-process development project with a total estimated investment of $1.0 billion.