Hudson Pacific Properties (NYSE:HPP) and FirstService (NASDAQ:FSV) are both mid-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.
Risk and Volatility
Hudson Pacific Properties has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, FirstService has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Hudson Pacific Properties and FirstService, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hudson Pacific Properties||0||1||7||0||2.88|
Hudson Pacific Properties presently has a consensus price target of $38.50, indicating a potential upside of 9.87%. FirstService has a consensus price target of $86.33, indicating a potential downside of 3.64%. Given Hudson Pacific Properties’ stronger consensus rating and higher probable upside, equities analysts clearly believe Hudson Pacific Properties is more favorable than FirstService.
Hudson Pacific Properties pays an annual dividend of $1.00 per share and has a dividend yield of 2.9%. FirstService pays an annual dividend of $0.60 per share and has a dividend yield of 0.7%. Hudson Pacific Properties pays out 53.8% of its earnings in the form of a dividend. FirstService pays out 33.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. FirstService has raised its dividend for 3 consecutive years.
Insider and Institutional Ownership
70.6% of FirstService shares are held by institutional investors. 1.9% of Hudson Pacific Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Hudson Pacific Properties and FirstService’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hudson Pacific Properties||$728.42 million||7.45||$99.37 million||$1.86||18.84|
|FirstService||$1.93 billion||1.61||$65.86 million||$1.80||49.77|
Hudson Pacific Properties has higher earnings, but lower revenue than FirstService. Hudson Pacific Properties is trading at a lower price-to-earnings ratio than FirstService, indicating that it is currently the more affordable of the two stocks.
This table compares Hudson Pacific Properties and FirstService’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hudson Pacific Properties||13.47%||2.51%||1.46%|
Hudson Pacific Properties beats FirstService on 9 of the 17 factors compared between the two stocks.
About Hudson Pacific Properties
Hudson Pacific Properties is a visionary real estate investment trust that owns and operates more than 17 million square feet of marquee office and studio properties. Focused on premier West Coast epicenters of innovation, media and technology, its anchor tenants include Fortune 500 and leading growth companies such as Netflix, Google, Square, Uber, NFL Enterprises and more. Hudson Pacific is publicly traded on the NYSE under the symbol HPP, and listed as a component of the Russell 2000 and the Russell 3000 indices.
FirstService Corporation, together with its subsidiaries, provides residential property services to residential and commercial customers in the United States and Canada. The company operates through two segments, FirstService Residential and FirstService Brands. The FirstService Residential segment provides property management services for private residential communities, such as condominiums, co-operatives, homeowner associations, master-planned communities, active adult and lifestyle communities, and various other residential developments. This segment also offers a range of ancillary services, including on-site staffing for building engineering and maintenance, full-service amenity management, security and concierge/front desk, and landscaping; and financial services comprising cash management, other banking transaction-related services, and specialized property insurance brokerage. In addition, this segment provides energy management solutions and advisory services, and resale processing services. The FirstService Brands segment offers property services through 6 franchise networks; and company-owned locations, including 18 California Closets locations and 9 Paul Davis Restoration locations. It offers residential and commercial restoration, painting, and floor coverings design and installation services; custom-designed and installed closet, and home storage solutions; home inspection services; exterior residential painting and window cleaning services; fire protection services; and heating, ventilation, and air conditioning services, as well as related services. This segment provides its services primarily under the Paul Davis Restoration, CertaPro Painters, California Closets, Pillar to Post Home Inspectors, Floor Coverings International, College Pro Painters, and Century Fire Protection brand names. FirstService Corporation was founded in 1988 and is headquartered in Toronto, Canada.
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