Easterly Government Properties (NYSE:DEA – Get Free Report) and Hudson Pacific Properties (NYSE:HPP – Get Free Report) are both small-cap real estate companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.
Valuation & Earnings
This table compares Easterly Government Properties and Hudson Pacific Properties”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Easterly Government Properties | $336.10 million | 3.11 | $13.00 million | $0.21 | 105.14 |
| Hudson Pacific Properties | $812.79 million | 0.63 | -$561.69 million | ($8.85) | -1.07 |
Easterly Government Properties has higher earnings, but lower revenue 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 Easterly Government Properties and Hudson Pacific Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Easterly Government Properties | 2.86% | 0.75% | 0.30% |
| Hudson Pacific Properties | -70.04% | -20.76% | -7.73% |
Dividends
Easterly Government Properties pays an annual dividend of $1.80 per share and has a dividend yield of 8.2%. Hudson Pacific Properties pays an annual dividend of $0.10 per share and has a dividend yield of 1.1%. Easterly Government Properties pays out 857.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hudson Pacific Properties pays out -1.1% of its earnings in the form of a dividend.
Analyst Ratings
This is a breakdown of current ratings for Easterly Government Properties and Hudson Pacific Properties, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Easterly Government Properties | 1 | 4 | 1 | 0 | 2.00 |
| Hudson Pacific Properties | 3 | 7 | 3 | 0 | 2.00 |
Easterly Government Properties currently has a consensus price target of $25.80, suggesting a potential upside of 16.85%. Hudson Pacific Properties has a consensus price target of $15.27, suggesting a potential upside of 60.88%. Given Hudson Pacific Properties’ higher probable upside, analysts plainly believe Hudson Pacific Properties is more favorable than Easterly Government Properties.
Volatility and Risk
Easterly Government Properties has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Hudson Pacific Properties has a beta of 1.96, indicating that its share price is 96% more volatile than the S&P 500.
Insider and Institutional Ownership
86.5% of Easterly Government Properties shares are owned by institutional investors. Comparatively, 97.6% of Hudson Pacific Properties shares are owned by institutional investors. 6.5% of Easterly Government Properties shares are owned by insiders. Comparatively, 2.5% of Hudson Pacific Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Easterly Government Properties beats Hudson Pacific Properties on 9 of the 15 factors compared between the two stocks.
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).
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.
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