Reviewing Hannon Armstrong Sustainable Infrastructure Capital (HASI) & Douglas Emmett (DEI)

Hannon Armstrong Sustainable Infrastructure Capital (NYSE: HASI) and Douglas Emmett (NYSE:DEI) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitability and earnings.

Insider & Institutional Ownership

73.3% of Hannon Armstrong Sustainable Infrastructure Capital shares are owned by institutional investors. Comparatively, 96.2% of Douglas Emmett shares are owned by institutional investors. 7.2% of Hannon Armstrong Sustainable Infrastructure Capital shares are owned by company insiders. Comparatively, 17.8% of Douglas Emmett shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Hannon Armstrong Sustainable Infrastructure Capital has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Douglas Emmett has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Dividends

Hannon Armstrong Sustainable Infrastructure Capital pays an annual dividend of $1.32 per share and has a dividend yield of 5.5%. Douglas Emmett pays an annual dividend of $0.92 per share and has a dividend yield of 2.3%. Hannon Armstrong Sustainable Infrastructure Capital pays out 244.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Douglas Emmett pays out 155.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hannon Armstrong Sustainable Infrastructure Capital has raised its dividend for 3 consecutive years and Douglas Emmett has raised its dividend for 6 consecutive years.

Profitability

This table compares Hannon Armstrong Sustainable Infrastructure Capital and Douglas Emmett’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hannon Armstrong Sustainable Infrastructure Capital 29.99% 8.57% 2.66%
Douglas Emmett 12.00% 2.95% 1.18%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Hannon Armstrong Sustainable Infrastructure Capital and Douglas Emmett, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hannon Armstrong Sustainable Infrastructure Capital 0 1 6 0 2.86
Douglas Emmett 2 7 1 0 1.90

Hannon Armstrong Sustainable Infrastructure Capital presently has a consensus price target of $25.33, suggesting a potential upside of 6.35%. Douglas Emmett has a consensus price target of $39.71, suggesting a potential downside of 0.86%. Given Hannon Armstrong Sustainable Infrastructure Capital’s stronger consensus rating and higher possible upside, research analysts plainly believe Hannon Armstrong Sustainable Infrastructure Capital is more favorable than Douglas Emmett.

Earnings and Valuation

This table compares Hannon Armstrong Sustainable Infrastructure Capital and Douglas Emmett’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hannon Armstrong Sustainable Infrastructure Capital $38.87 million 31.65 $27.89 million $0.54 44.11
Douglas Emmett $788.75 million 8.27 $481.47 million $0.59 67.90

Douglas Emmett has higher revenue and earnings than Hannon Armstrong Sustainable Infrastructure Capital. Hannon Armstrong Sustainable Infrastructure Capital is trading at a lower price-to-earnings ratio than Douglas Emmett, indicating that it is currently the more affordable of the two stocks.

Summary

Hannon Armstrong Sustainable Infrastructure Capital beats Douglas Emmett on 10 of the 17 factors compared between the two stocks.

About Hannon Armstrong Sustainable Infrastructure Capital

Hannon Armstrong Sustainable Infrastructure Capital, Inc. makes debt and equity investments in sustainable infrastructure, including energy efficiency and renewable energy. The Company focuses on providing preferred or senior level capital to sponsors and obligors for assets that generate long-term, recurring and predictable cash flows. The Company focuses its investment activities primarily on Energy Efficiency Projects, which include projects typically undertaken by energy service companies, which reduce a building’s or facility’s energy usage or cost by installing various building components, including heating, ventilation and air conditioning systems, lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems, and Renewable Energy Projects, which include projects that deploy cleaner energy sources, such as solar and wind to generate power production. It may also invest in other projects, such as water or communications infrastructure.

About Douglas Emmett

Douglas Emmett, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company is owner and operator of office and multifamily properties located in submarkets in Los Angeles and Honolulu. The Company operates through two segments: the acquisition, development, ownership and management of office real estate (Office Segment), and the acquisition, development, ownership and management of multifamily real estate (Multifamily Segment). The services for its Office segment include primarily rental of office space and other tenant services, including parking and storage space rental. The services for its Multifamily segment include primarily rental of apartments and other tenant services, including parking and storage space rental. It focuses on owning, acquiring developing and managing a substantial share of office properties and multifamily communities in neighborhoods.

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