Critical Comparison: Kilroy Realty (NYSE:KRC) vs. Hudson Pacific Properties (NYSE:HPP)

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Kilroy Realty and Hudson Pacific Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kilroy Realty	2	9	5	0	2.19
Hudson Pacific Properties	3	5	4	1	2.23

Kilroy Realty presently has a consensus target price of $39.13, indicating a potential upside of 6.28%. Hudson Pacific Properties has a consensus target price of $15.57, indicating a potential upside of 8.71%. Given Hudson Pacific Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Hudson Pacific Properties is more favorable than Kilroy Realty.

Valuation & Earnings

This table compares Kilroy Realty and Hudson Pacific Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kilroy Realty	$1.11 billion	3.85	$276.12 million	$1.42	25.93
Hudson Pacific Properties	$831.10 million	0.94	-$561.69 million	($8.85)	-1.62

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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kilroy Realty	15.47%	3.04%	1.56%
Hudson Pacific Properties	-70.04%	-20.76%	-7.73%

Institutional & Insider Ownership

94.2% of Kilroy Realty shares are owned by institutional investors. Comparatively, 97.6% of Hudson Pacific Properties shares are owned by institutional investors. 0.8% of Kilroy Realty shares are owned by company insiders. Comparatively, 2.5% of Hudson Pacific Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Kilroy Realty has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Hudson Pacific Properties has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500.

Summary

Kilroy Realty beats Hudson Pacific Properties on 9 of the 15 factors compared between the two stocks.

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.

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.