Analyzing JBG SMITH Properties (NYSE:JBGS) and Columbia Property Trust (NYSE:CXP)

JBG SMITH Properties (NYSE:JBGS) and Columbia Property Trust (NYSE:CXP) are both mid-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Institutional & Insider Ownership

86.2% of JBG SMITH Properties shares are held by institutional investors. Comparatively, 78.6% of Columbia Property Trust shares are held by institutional investors. 8.9% of JBG SMITH Properties shares are held by insiders. Comparatively, 0.8% of Columbia Property Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares JBG SMITH Properties and Columbia Property Trust’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
JBG SMITH Properties $644.18 million 8.22 $39.92 million $1.73 22.82
Columbia Property Trust $297.94 million 7.92 $9.49 million $1.56 12.94

JBG SMITH Properties has higher revenue and earnings than Columbia Property Trust. Columbia Property Trust is trading at a lower price-to-earnings ratio than JBG SMITH Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for JBG SMITH Properties and Columbia Property Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JBG SMITH Properties 0 1 0 0 2.00
Columbia Property Trust 0 2 0 0 2.00

JBG SMITH Properties currently has a consensus target price of $42.00, indicating a potential upside of 6.38%. Columbia Property Trust has a consensus target price of $22.00, indicating a potential upside of 9.02%. Given Columbia Property Trust’s higher possible upside, analysts plainly believe Columbia Property Trust is more favorable than JBG SMITH Properties.

Risk & Volatility

JBG SMITH Properties has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Columbia Property Trust has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Dividends

JBG SMITH Properties pays an annual dividend of $0.90 per share and has a dividend yield of 2.3%. Columbia Property Trust pays an annual dividend of $0.80 per share and has a dividend yield of 4.0%. JBG SMITH Properties pays out 52.0% of its earnings in the form of a dividend. Columbia Property Trust pays out 51.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Columbia Property Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares JBG SMITH Properties and Columbia Property Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
JBG SMITH Properties 4.94% 0.99% 0.53%
Columbia Property Trust 12.17% 1.32% 0.88%

JBG SMITH Properties Company Profile

JBG SMITH Properties, a real estate investment trust (REIT), owns, operates, invests in, and develops real estate assets in Washington, the United States. It operates in three segments: commercial, multifamily, and third-party asset management and real estate services. The company owns and operates a portfolio of commercial, multifamily, and retail assets, as well as provides fee-based real estate services. As of December 31, 2018, its operating portfolio consisted of 62 operating assets comprising 46 commercial assets and 16 multifamily assets. The company has elected to be taxed as a REIT and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. JBG SMITH Properties was founded in 2016 and is headquartered in Chevy Chase, Maryland.

Columbia Property Trust Company Profile

Columbia Property Trust (NYSE: CXP) owns and operates Class-A office buildings concentrated in New York, San Francisco, and Washington, D.C. Its portfolio includes 19 properties with approximately nine million square feet. Columbia carries an investment-grade rating from both Moody's and Standard & Poor's.

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