JBG SMITH Properties (NYSE:JBGS) versus Clipper Realty (NYSE:CLPR) Critical Survey

JBG SMITH Properties (NYSE:JBGS) and Clipper Realty (NYSE:CLPR) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.

Earnings and Valuation

This table compares JBG SMITH Properties and Clipper Realty”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JBG SMITH Properties	$505.51 million	1.69	-$139.06 million	($1.87)	-7.84
Clipper Realty	$153.20 million	0.32	-$19.90 million	($1.37)	-2.22

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for JBG SMITH Properties and Clipper Realty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JBG SMITH Properties	2	0	0	0	1.00
Clipper Realty	0	1	0	0	2.00

JBG SMITH Properties presently has a consensus price target of $18.50, indicating a potential upside of 26.15%. Given JBG SMITH Properties’ higher probable upside, equities research analysts clearly believe JBG SMITH Properties is more favorable than Clipper Realty.

Profitability

This table compares JBG SMITH Properties and Clipper Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JBG SMITH Properties	-22.16%	-9.32%	-2.53%
Clipper Realty	-12.99%	N/A	-1.60%

Dividends

JBG SMITH Properties pays an annual dividend of $0.70 per share and has a dividend yield of 4.8%. Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 12.5%. JBG SMITH Properties pays out -37.4% of its earnings in the form of a dividend. Clipper Realty pays out -27.7% 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.

Risk and Volatility

JBG SMITH Properties has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Clipper Realty has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.

Insider & Institutional Ownership

98.5% of JBG SMITH Properties shares are owned by institutional investors. Comparatively, 37.6% of Clipper Realty shares are owned by institutional investors. 11.9% of JBG SMITH Properties shares are owned by company insiders. Comparatively, 53.0% of Clipper Realty shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Clipper Realty beats JBG SMITH Properties on 9 of the 15 factors compared between the two stocks.

About JBG SMITH Properties

JBG SMITH Properties is a real estate investment trust, which engages in owning, operating, investing in, and developing a portfolio of mixed-use properties. It operates through the following segments: Multifamily, Commercial, and Other. The Multifamily segment refers to the commercial buildings with public areas, retail spaces, and walkable streets. The Commercial segment rents to federal government tenants. The Other segment relates to development assets, corporate entities, land assets for which are the ground lessor and the elimination of inter-segment activity. The company was founded on October 27, 2016, and is headquartered in Bethesda, MD.

About Clipper Realty

Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates, and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn.