Financial Contrast: Hammerson (OTCMKTS:HMSNF) and Kilroy Realty (OTCMKTS:KRC)

Hammerson (OTCMKTS:HMSNF) and Kilroy Realty (NYSE:KRC) are both mid-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Dividends

Kilroy Realty pays an annual dividend of $1.82 per share and has a dividend yield of 2.5%. Hammerson does not pay a dividend. Kilroy Realty pays out 52.3% of its earnings in the form of a dividend. Kilroy Realty has increased its dividend for 3 consecutive years.

Risk & Volatility

Hammerson has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Kilroy Realty has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Valuation and Earnings

This table compares Hammerson and Kilroy Realty’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hammerson $390.30 million 7.34 N/A N/A N/A
Kilroy Realty $747.30 million 9.88 $258.41 million $3.48 21.01

Kilroy Realty has higher revenue and earnings than Hammerson.

Analyst Ratings

This is a summary of current ratings for Hammerson and Kilroy Realty, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hammerson 1 2 1 0 2.00
Kilroy Realty 0 3 4 0 2.57

Kilroy Realty has a consensus price target of $80.60, suggesting a potential upside of 10.23%. Given Kilroy Realty’s stronger consensus rating and higher possible upside, analysts clearly believe Kilroy Realty is more favorable than Hammerson.

Profitability

This table compares Hammerson and Kilroy Realty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hammerson N/A N/A N/A
Kilroy Realty 33.84% 6.27% 3.39%

Insider and Institutional Ownership

96.7% of Kilroy Realty shares are owned by institutional investors. 2.3% of Kilroy Realty shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Kilroy Realty beats Hammerson on 12 of the 14 factors compared between the two stocks.

Hammerson Company Profile

We are an owner, manager and developer of retail destinations in Europe. Our portfolio includes investments in 22 prime shopping centres in the UK, Ireland and France, 15 convenient retail parks in the UK and 20 premium outlets across Europe.

Kilroy Realty Company Profile

Kilroy Realty Corporation (KRC), a publicly traded real estate investment trust and member of the S&P MidCap 400 Index, is one of the West Coast's premier landlords. The company has over 70 years of experience developing, acquiring and managing office and mixed-use real estate assets. The company provides physical work environments that foster creativity and productivity and serves a broad roster of dynamic, innovation-driven tenants, including technology, entertainment, digital media and health care companies. At December 31, 2018, the company's stabilized portfolio totaled approximately 13.2 million square feet of office space located in the coastal regions of Los Angeles, Orange County, San Diego, the San Francisco Bay Area and Greater Seattle and 200 residential units located in the Hollywood submarket of Los Angeles. The stabilized portfolio was 94.4% occupied and 96.6% leased. In addition, KRC had three projects under construction totaling approximately 1.3 million square feet of office space that was 37% leased, 801 residential units and 96,000 square feet of retail space that was 91% leased, as well as two projects in the tenant improvement phase totaling approximately 1.2 million square feet of office and PDR space. The office components of the two projects are fully leased to Adobe and Dropbox. The company's commitment and leadership position in sustainability has been recognized by various industry groups across the world. In September 2018, the company was recognized by GRESB both as North American leader across all asset classes and a global leader among all publicly traded real estate companies. Other sustainability accolades include NAREIT's Leader in the Light award for the past five years, the EPA's highest honor of Sustained Excellence and winner of Energy Star Partner of the Year for the past five years. The company is listed in the Dow Jones Sustainability World Index. At the end of the fourth quarter, the company's stabilized portfolio was 63% LEED certified and 79% of eligible properties were ENERGY STAR certified.

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