Claros Mortgage Trust (NYSE:CMTG – Get Rating) and Hudson Pacific Properties (NYSE:HPP – Get Rating) are both mid-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.
Insider and Institutional Ownership
54.8% of Claros Mortgage Trust shares are held by institutional investors. Comparatively, 96.5% of Hudson Pacific Properties shares are held by institutional investors. 2.0% of Claros Mortgage Trust shares are held by company insiders. Comparatively, 3.0% of Hudson Pacific Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Claros Mortgage Trust and Hudson Pacific Properties’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Claros Mortgage Trust||$247.01 million||10.55||$170.55 million||$1.18||15.81|
|Hudson Pacific Properties||$896.84 million||2.24||$10.11 million||($0.19)||-74.58|
Claros Mortgage Trust has higher earnings, but lower revenue than Hudson Pacific Properties. Hudson Pacific Properties is trading at a lower price-to-earnings ratio than Claros Mortgage Trust, indicating that it is currently the more affordable of the two stocks.
This table compares Claros Mortgage Trust and Hudson Pacific Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Claros Mortgage Trust||62.58%||6.98%||2.30%|
|Hudson Pacific Properties||-2.05%||-0.54%||-0.22%|
This is a breakdown of recent ratings for Claros Mortgage Trust and Hudson Pacific Properties, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Claros Mortgage Trust||0||2||2||0||2.50|
|Hudson Pacific Properties||3||6||2||0||1.91|
Claros Mortgage Trust currently has a consensus target price of $19.40, indicating a potential upside of 3.97%. Hudson Pacific Properties has a consensus target price of $20.18, indicating a potential upside of 42.43%. Given Hudson Pacific Properties’ higher possible upside, analysts clearly believe Hudson Pacific Properties is more favorable than Claros Mortgage Trust.
Claros Mortgage Trust pays an annual dividend of $1.48 per share and has a dividend yield of 7.9%. Hudson Pacific Properties pays an annual dividend of $1.00 per share and has a dividend yield of 7.1%. Claros Mortgage Trust pays out 125.4% 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 -526.3% of its earnings in the form of a dividend.
Claros Mortgage Trust beats Hudson Pacific Properties on 9 of the 14 factors compared between the two stocks.
About Claros Mortgage Trust
Claros Mortgage Trust, Inc. is a real estate investment trust that focuses primarily on originating senior and subordinate loans on transitional commercial real estate assets located in principal markets across the United States. The company is qualified as a real estate investment trust (REIT) under the Internal Revenue Code. As a REIT, its net income would be exempt from federal taxation to the extent that it is distributed as dividends to shareholders. The company was incorporated in 2015 and is based in New York, New York.
About Hudson Pacific Properties
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