JBG SMITH Properties (NYSE:JBGS) versus Cromwell Property Group (OTCMKTS:CMWCF) Financial Analysis

JBG SMITH Properties (NYSE:JBGS) and Cromwell Property Group (OTCMKTS:CMWCF) are both real estate companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Institutional and Insider Ownership

98.5% of JBG SMITH Properties shares are held by institutional investors. 11.9% of JBG SMITH Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

JBG SMITH Properties pays an annual dividend of $0.70 per share and has a dividend yield of 6.0%. Cromwell Property Group pays an annual dividend of $0.02 per share and has a dividend yield of 7.7%. JBG SMITH Properties pays out -26.8% of its earnings in the form of a dividend. Cromwell Property Group pays out 18.2% 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.

Analyst Recommendations

This is a breakdown of recent ratings for JBG SMITH Properties and Cromwell Property Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JBG SMITH Properties	3	0	0	0	1.00
Cromwell Property Group	0	0	0	0	0.00

JBG SMITH Properties presently has a consensus target price of $16.67, indicating a potential upside of 43.43%. Given JBG SMITH Properties’ stronger consensus rating and higher possible upside, analysts clearly believe JBG SMITH Properties is more favorable than Cromwell Property Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JBG SMITH Properties	-29.89%	-13.07%	-3.47%
Cromwell Property Group	N/A	N/A	N/A

Earnings & Valuation

This table compares JBG SMITH Properties and Cromwell Property Group”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	$505.51 million	1.34	-$139.06 million	($2.61)	-4.45
Cromwell Property Group	N/A	N/A	N/A	$0.11	2.38

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

Cromwell Property Group (ASX:CMW) is a real estate investor and fund manager with operations on three continents and a global investor base. Cromwell is included in the S&P/ASX200. As at 30 June 2022, Cromwell had a market capitalisation of $2.0 billion, an Australian investment portfolio valued at $3.0 billion and total assets under management of $12.0 billion across Australia, New Zealand and Europe.