JBG SMITH Properties (NYSE:JBGS) versus RLJ Lodging Trust (NYSE:RLJ) Financial Contrast

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

Profitability

This table compares RLJ Lodging Trust and JBG SMITH Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RLJ Lodging Trust	5.29%	3.53%	1.44%
JBG SMITH Properties	-22.37%	-5.66%	-2.39%

Valuation & Earnings

This table compares RLJ Lodging Trust and JBG SMITH Properties’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RLJ Lodging Trust	$1.33 billion	1.11	$76.40 million	$0.28	33.61
JBG SMITH Properties	$604.20 million	2.25	-$79.98 million	($1.39)	-11.04

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

Volatility & Risk

RLJ Lodging Trust has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500. Comparatively, JBG SMITH Properties has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Dividends

RLJ Lodging Trust pays an annual dividend of $0.40 per share and has a dividend yield of 4.3%. JBG SMITH Properties pays an annual dividend of $0.70 per share and has a dividend yield of 4.6%. RLJ Lodging Trust pays out 142.9% 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 pays out -50.4% of its earnings in the form of a dividend. JBG SMITH Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings and recommmendations for RLJ Lodging Trust and JBG SMITH Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RLJ Lodging Trust	0	2	4	0	2.67
JBG SMITH Properties	1	0	0	0	1.00

RLJ Lodging Trust presently has a consensus price target of $13.58, suggesting a potential upside of 44.04%. JBG SMITH Properties has a consensus price target of $14.50, suggesting a potential downside of 5.35%. Given RLJ Lodging Trust’s stronger consensus rating and higher possible upside, equities research analysts plainly believe RLJ Lodging Trust is more favorable than JBG SMITH Properties.

Insider & Institutional Ownership

92.4% of RLJ Lodging Trust shares are held by institutional investors. Comparatively, 98.5% of JBG SMITH Properties shares are held by institutional investors. 3.0% of RLJ Lodging Trust shares are held by company insiders. Comparatively, 3.7% of JBG SMITH Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

RLJ Lodging Trust beats JBG SMITH Properties on 10 of the 15 factors compared between the two stocks.

About RLJ Lodging Trust

RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. The Company's portfolio currently consists of 96 hotels with approximately 21,200 rooms, located in 23 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms.

About JBG SMITH Properties

JBG SMITH owns, operates, invests in, and develops mixed-use properties in high growth and high barrier-to-entry submarkets in and around Washington, DC, most notably National Landing. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, amenity-rich, walkable neighborhoods throughout the Washington, DC metropolitan area. Approximately 75.0% of JBG SMITH's holdings are in the National Landing submarket in Northern Virginia, which is anchored by four key demand drivers: Amazon's new headquarters; Virginia Tech's under-construction $1 billion Innovation Campus; the submarket's proximity to the Pentagon; and JBG SMITH's deployment of 5G digital infrastructure. JBG SMITH's dynamic portfolio currently comprises 14.2 million square feet of high-growth office, multifamily, and retail assets at share, 99% of which are Metro-served. It also maintains a development pipeline encompassing 8.8 million square feet of mixed-use, primarily multifamily, development opportunities. JBG SMITH is committed to the operation and development of green, smart, and healthy buildings and plans to maintain carbon neutral operations annually.