JBG SMITH Properties (NYSE:JBGS) & Vornado Realty Trust (NYSE:VNO) Head to Head Survey

JBG SMITH Properties (NYSE:JBGS) and Vornado Realty Trust (NYSE:VNO) are both real estate companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for JBG SMITH Properties and Vornado Realty Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JBG SMITH Properties	3	0	0	0	1.00
Vornado Realty Trust	4	5	4	0	2.00

JBG SMITH Properties currently has a consensus price target of $12.50, suggesting a potential upside of 6.28%. Vornado Realty Trust has a consensus price target of $38.91, suggesting a potential upside of 14.54%. Given Vornado Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Vornado Realty Trust is more favorable than JBG SMITH Properties.

Valuation and Earnings

This table compares JBG SMITH Properties and Vornado Realty Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JBG SMITH Properties	$498.60 million	1.38	-$139.06 million	($2.61)	-4.51
Vornado Realty Trust	$1.81 billion	3.50	$904.96 million	($0.29)	-117.14

Vornado Realty Trust has higher revenue and earnings than JBG SMITH Properties. Vornado Realty 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.

Dividends

JBG SMITH Properties pays an annual dividend of $0.70 per share and has a dividend yield of 6.0%. Vornado Realty Trust pays an annual dividend of $0.74 per share and has a dividend yield of 2.2%. JBG SMITH Properties pays out -26.8% of its earnings in the form of a dividend. Vornado Realty Trust pays out -255.2% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JBG SMITH Properties	-29.89%	-13.31%	-3.49%
Vornado Realty Trust	0.50%	0.19%	0.06%

Volatility and Risk

JBG SMITH Properties has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Vornado Realty Trust has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500.

Institutional & Insider Ownership

98.5% of JBG SMITH Properties shares are owned by institutional investors. Comparatively, 90.0% of Vornado Realty Trust shares are owned by institutional investors. 11.9% of JBG SMITH Properties shares are owned by company insiders. Comparatively, 9.0% of Vornado Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Vornado Realty Trust beats JBG SMITH Properties on 12 of the 16 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 Vornado Realty Trust

Vornado Realty Trust is a fully – integrated equity real estate investment trust.