Head-To-Head Comparison: JBG SMITH Properties (NYSE:JBGS) vs. Empire State Realty Trust (NYSE:ESRT)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JBG SMITH Properties	-39.73%	-18.71%	-4.78%
Empire State Realty Trust	0.30%	0.13%	0.05%

Earnings & Valuation

This table compares JBG SMITH Properties and Empire State Realty 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	$516.95 million	1.40	-$139.06 million	($3.54)	-3.55
Empire State Realty Trust	$778.14 million	1.18	$47.60 million	$0.04	132.38

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

Institutional and Insider Ownership

98.5% of JBG SMITH Properties shares are held by institutional investors. Comparatively, 67.1% of Empire State Realty Trust shares are held by institutional investors. 11.9% of JBG SMITH Properties shares are held by insiders. Comparatively, 15.2% of Empire State Realty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for JBG SMITH Properties and Empire State Realty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JBG SMITH Properties	3	0	0	0	1.00
Empire State Realty Trust	2	1	0	0	1.33

JBG SMITH Properties currently has a consensus price target of $12.50, indicating a potential downside of 0.44%. Empire State Realty Trust has a consensus price target of $5.00, indicating a potential downside of 5.57%. Given JBG SMITH Properties’ higher probable upside, equities research analysts clearly believe JBG SMITH Properties is more favorable than Empire State Realty Trust.

Risk and Volatility

JBG SMITH Properties has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Empire State Realty Trust has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.

Dividends

JBG SMITH Properties pays an annual dividend of $0.70 per share and has a dividend yield of 5.6%. Empire State Realty Trust pays an annual dividend of $0.14 per share and has a dividend yield of 2.6%. JBG SMITH Properties pays out -19.8% of its earnings in the form of a dividend. Empire State Realty Trust pays out 350.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. JBG SMITH Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Empire State Realty Trust beats JBG SMITH Properties on 10 of the 15 factors compared between the two stocks.

About JBG SMITH Properties

JBG SMITH Properties is a real estate investment trust that owns, operates and develops residential, office and retail properties. Its portfolio is concentrated in the Washington, D.C., metropolitan area, with a significant presence in National Landing, Virginia, as well as properties in the District and suburban Maryland. The company focuses on urban, mixed-use and transit-oriented communities, serving residents, businesses and retail tenants. Its activities include leasing and managing existing properties and developing projects intended to bring housing, workplaces and services together.

About Empire State Realty Trust

Empire State Realty Trust, Inc. is a real estate investment trust that owns, manages and leases office and retail properties, primarily in Manhattan and the broader New York metropolitan area. Its portfolio includes the Empire State Building and other commercial properties. The company’s business includes leasing office and retail space to tenants, as well as operating the Empire State Building Observatory, a visitor attraction offering views of New York City. Empire State Realty Trust became a publicly traded company in 2013.