Hudson Pacific Properties (NYSE:HPP – Get Free Report) and Kilroy Realty (NYSE:KRC – Get Free Report) are both real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.
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% |
Risk & Volatility
Hudson Pacific Properties has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500. Comparatively, Kilroy Realty has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.
Earnings 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.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Hudson Pacific Properties and Kilroy Realty, as reported by MarketBeat.com.
| 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, indicating a potential upside of 7.36%. Kilroy Realty has a consensus target price of $39.13, indicating a potential upside of 7.16%. Given Hudson Pacific Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Hudson Pacific Properties is more favorable than Kilroy Realty.
Institutional and Insider 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 company insiders. Comparatively, 0.8% of Kilroy Realty shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
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.
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