Reviewing Hudson Pacific Properties (NYSE:HPP) and Sabra Healthcare REIT (NASDAQ:SBRA)

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

Valuation and Earnings

This table compares Hudson Pacific Properties and Sabra Healthcare REIT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hudson Pacific Properties	$831.10 million	0.39	-$561.69 million	($12.99)	-0.46
Sabra Healthcare REIT	$774.63 million	6.26	$155.61 million	$0.64	30.05

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

Volatility and Risk

Hudson Pacific Properties has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Sabra Healthcare REIT has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Hudson Pacific Properties and Sabra Healthcare REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hudson Pacific Properties	2	8	4	0	2.14
Sabra Healthcare REIT	0	5	4	1	2.60

Hudson Pacific Properties presently has a consensus price target of $13.49, suggesting a potential upside of 128.09%. Sabra Healthcare REIT has a consensus price target of $22.00, suggesting a potential upside of 14.40%. Given Hudson Pacific Properties’ higher possible upside, analysts plainly believe Hudson Pacific Properties is more favorable than Sabra Healthcare REIT.

Profitability

This table compares Hudson Pacific Properties and Sabra Healthcare REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hudson Pacific Properties	-69.12%	-19.89%	-7.37%
Sabra Healthcare REIT	20.09%	5.63%	2.88%

Insider & Institutional Ownership

97.6% of Hudson Pacific Properties shares are held by institutional investors. Comparatively, 99.4% of Sabra Healthcare REIT shares are held by institutional investors. 3.9% of Hudson Pacific Properties shares are held by insiders. Comparatively, 1.1% of Sabra Healthcare REIT shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Sabra Healthcare REIT beats Hudson Pacific Properties on 10 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 Sabra Healthcare REIT

Sabra Health Care REIT, Inc. engages in the business of acquiring, financing, and owning real estate property. The company was founded on May 10, 2010 and is headquartered in Tustin, CA.