Contrasting Rexford Industrial Realty (NYSE:REXR) and Hudson Pacific Properties (NYSE:HPP)

Hudson Pacific Properties (NYSE:HPP) and Rexford Industrial Realty (NYSE:REXR) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Hudson Pacific Properties and Rexford Industrial Realty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hudson Pacific Properties	1	6	4	0	2.27
Rexford Industrial Realty	1	7	2	0	2.10

Hudson Pacific Properties currently has a consensus price target of $3.20, suggesting a potential upside of 19.63%. Rexford Industrial Realty has a consensus price target of $41.09, suggesting a potential downside of 1.73%. Given Hudson Pacific Properties’ stronger consensus rating and higher probable upside, research analysts plainly believe Hudson Pacific Properties is more favorable than Rexford Industrial Realty.

Earnings & Valuation

This table compares Hudson Pacific Properties and Rexford Industrial Realty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hudson Pacific Properties	$842.08 million	1.20	-$352.29 million	($2.81)	-0.95
Rexford Industrial Realty	$986.53 million	10.03	$273.80 million	$1.35	30.97

Rexford Industrial Realty has higher revenue and earnings than Hudson Pacific Properties. Hudson Pacific Properties is trading at a lower price-to-earnings ratio than Rexford Industrial Realty, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hudson Pacific Properties and Rexford Industrial Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hudson Pacific Properties	-53.76%	-15.10%	-5.27%
Rexford Industrial Realty	32.04%	3.62%	2.47%

Risk & Volatility

Hudson Pacific Properties has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, Rexford Industrial Realty has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Insider and Institutional Ownership

97.6% of Hudson Pacific Properties shares are owned by institutional investors. Comparatively, 99.5% of Rexford Industrial Realty shares are owned by institutional investors. 4.9% of Hudson Pacific Properties shares are owned by insiders. Comparatively, 1.2% of Rexford Industrial Realty shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Rexford Industrial Realty beats Hudson Pacific Properties on 9 of the 14 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 Rexford Industrial Realty

Rexford Industrial Realty, Inc. is a self-administered and self-managed real estate investment trust, which engages in owning and operating industrial properties in infill markets. The company was founded by Richard S. Ziman on January 18, 2013 and is headquartered in Los Angeles, CA.