Financial Analysis: Hudson Pacific Properties (NYSE:HPP) & BRAEMAR HOTELS & RESORTS (NYSE:BHR)

BRAEMAR HOTELS & RESORTS (NYSE:BHR) and Hudson Pacific Properties (NYSE:HPP) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Volatility and Risk

BRAEMAR HOTELS & RESORTS has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Hudson Pacific Properties has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500.

Valuation and Earnings

This table compares BRAEMAR HOTELS & RESORTS and Hudson Pacific Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRAEMAR HOTELS & RESORTS	$704.02 million	0.24	-$22.32 million	($1.07)	-2.34
Hudson Pacific Properties	$831.10 million	0.42	-$561.69 million	($12.99)	-0.50

BRAEMAR HOTELS & RESORTS has higher earnings, but lower revenue than Hudson Pacific Properties. BRAEMAR HOTELS & RESORTS is trading at a lower price-to-earnings ratio than Hudson Pacific Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for BRAEMAR HOTELS & RESORTS and Hudson Pacific Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRAEMAR HOTELS & RESORTS	1	1	0	0	1.50
Hudson Pacific Properties	2	8	4	0	2.14

Hudson Pacific Properties has a consensus price target of $13.74, suggesting a potential upside of 111.90%. Given Hudson Pacific Properties’ stronger consensus rating and higher probable upside, analysts plainly believe Hudson Pacific Properties is more favorable than BRAEMAR HOTELS & RESORTS.

Insider and Institutional Ownership

64.8% of BRAEMAR HOTELS & RESORTS shares are held by institutional investors. Comparatively, 97.6% of Hudson Pacific Properties shares are held by institutional investors. 8.2% of BRAEMAR HOTELS & RESORTS shares are held by insiders. Comparatively, 3.9% of Hudson Pacific Properties shares are held 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.

Profitability

This table compares BRAEMAR HOTELS & RESORTS and Hudson Pacific Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BRAEMAR HOTELS & RESORTS	-3.17%	-13.42%	-1.45%
Hudson Pacific Properties	-69.12%	-19.89%	-7.37%

Summary

Hudson Pacific Properties beats BRAEMAR HOTELS & RESORTS on 8 of the 14 factors compared between the two stocks.

About BRAEMAR HOTELS & RESORTS

Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BHR and are externally-advised by Ashford (NYSE American: AINC).

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.