Seritage Growth Properties (SRG) & Hudson Pacific Properties (HPP) Critical Comparison
Seritage Growth Properties (NYSE:SRG) and Hudson Pacific Properties (NYSE:HPP) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.
Valuation and Earnings
This table compares Seritage Growth Properties and Hudson Pacific Properties’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Seritage Growth Properties||$241.02 million||6.41||-$73.75 million||N/A||N/A|
|Hudson Pacific Properties||$728.14 million||6.59||$67.96 million||$1.99||15.39|
Seritage Growth Properties pays an annual dividend of $1.00 per share and has a dividend yield of 2.4%. Hudson Pacific Properties pays an annual dividend of $1.00 per share and has a dividend yield of 3.3%. Hudson Pacific Properties pays out 50.3% of its earnings in the form of a dividend. Hudson Pacific Properties has increased its dividend for 2 consecutive years. Hudson Pacific Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Seritage Growth Properties and Hudson Pacific Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Seritage Growth Properties||-13.20%||-2.50%||-1.22%|
|Hudson Pacific Properties||15.29%||2.76%||1.64%|
This is a breakdown of recent ratings and price targets for Seritage Growth Properties and Hudson Pacific Properties, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Seritage Growth Properties||1||1||0||0||1.50|
|Hudson Pacific Properties||0||4||5||0||2.56|
Seritage Growth Properties presently has a consensus price target of $39.00, suggesting a potential downside of 6.59%. Hudson Pacific Properties has a consensus price target of $38.00, suggesting a potential upside of 24.06%. Given Hudson Pacific Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Hudson Pacific Properties is more favorable than Seritage Growth Properties.
Risk & Volatility
Seritage Growth Properties has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Hudson Pacific Properties has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.
Hudson Pacific Properties beats Seritage Growth Properties on 11 of the 14 factors compared between the two stocks.
Seritage Growth Properties Company Profile
Seritage Growth Properties is a publicly-traded, self-administered and self-managed REIT with 222 wholly-owned properties and 26 joint venture properties totaling approximately 39 million square feet of space across 49 states and Puerto Rico. The Company was formed to unlock the underlying real estate value of a high-quality retail portfolio it acquired from Sears Holdings in July 2015. Pursuant to a master lease, the Company has the right to recapture certain space from Sears Holdings for retenanting or redevelopment purposes. The Company's mission is to create and own revitalized shopping, dining, entertainment and mixed-use destinations that provide enriched experiences for consumers and local communities, and create long-term value for our shareholders.
Hudson Pacific Properties Company Profile
Hudson Pacific Properties is a vertically integrated real estate Company focused on acquiring, repositioning, developing and operating high-quality office and state-of-the-art studio properties in select West Coast markets. Hudson Pacific invests across the risk-return spectrum, favoring opportunities where it can employ leasing, capital investment and management expertise to create value. Founded in 2006 as Hudson Capital, the Company went public in 2010, electing to be taxed as a real estate investment trust. Through the years, Hudson Pacific has strategically assembled a portfolio in high-growth, high-barrier-to-entry submarkets throughout Northern and Southern California and the Pacific Northwest. The Company is a leading provider of design-forward, next-generation workspaces for a variety of tenants, with a focus on Fortune 500 and industry-leading growth companies, many in the technology, studio sectors. As a long-term owner, Hudson Pacific prioritizes tenant satisfaction and retention, providing highly customized build-outs and working proactively to accommodate tenants' growth. Hudson Pacific trades as a component of the Russell 2000® and the Russell 3000® indices.
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