Hudson Pacific Properties (NYSE:HPP – Get Free Report) and Easterly Government Properties (NYSE:DEA – Get Free Report) are both small-cap real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.
Earnings & Valuation
This table compares Hudson Pacific Properties and Easterly Government Properties”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 | 0.71 | -$561.69 million | ($8.85) | -1.23 |
| Easterly Government Properties | $357.15 million | 3.00 | $13.00 million | $0.21 | 107.81 |
Easterly Government Properties has lower revenue, but higher earnings than Hudson Pacific Properties. Hudson Pacific Properties is trading at a lower price-to-earnings ratio than Easterly Government Properties, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Hudson Pacific Properties and Easterly Government Properties’ 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% |
| Easterly Government Properties | 2.86% | 0.75% | 0.30% |
Analyst Recommendations
This is a summary of current ratings and price targets for Hudson Pacific Properties and Easterly Government Properties, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hudson Pacific Properties | 3 | 7 | 3 | 0 | 2.00 |
| Easterly Government Properties | 1 | 4 | 1 | 0 | 2.00 |
Hudson Pacific Properties currently has a consensus price target of $15.27, indicating a potential upside of 40.05%. Easterly Government Properties has a consensus price target of $25.80, indicating a potential upside of 13.96%. Given Hudson Pacific Properties’ higher probable upside, research analysts clearly believe Hudson Pacific Properties is more favorable than Easterly Government Properties.
Insider & Institutional Ownership
97.6% of Hudson Pacific Properties shares are owned by institutional investors. Comparatively, 86.5% of Easterly Government Properties shares are owned by institutional investors. 2.5% of Hudson Pacific Properties shares are owned by insiders. Comparatively, 6.5% of Easterly Government Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
Hudson Pacific Properties has a beta of 1.96, suggesting that its share price is 96% more volatile than the S&P 500. Comparatively, Easterly Government Properties has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.
Summary
Easterly Government Properties beats Hudson Pacific Properties on 8 of the 13 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 Easterly Government Properties
Easterly Government Properties, Inc. (NYSE: DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased to such agencies either directly or through the U.S. General Services Administration (GSA).
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