Critical Comparison: JBG SMITH Properties (NYSE:JBGS) & Vornado Realty Trust (NYSE:VNO)

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

Risk & Volatility

Vornado Realty Trust has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500. Comparatively, JBG SMITH Properties has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Analyst Ratings

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

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

Vornado Realty Trust currently has a consensus price target of $38.91, suggesting a potential upside of 10.69%. JBG SMITH Properties has a consensus price target of $12.50, suggesting a potential upside of 3.66%. Given Vornado Realty Trust’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Vornado Realty Trust is more favorable than JBG SMITH Properties.

Dividends

Vornado Realty Trust pays an annual dividend of $0.74 per share and has a dividend yield of 2.1%. JBG SMITH Properties pays an annual dividend of $0.70 per share and has a dividend yield of 5.8%. Vornado Realty Trust pays out 3,700.0% 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 pays out -26.8% 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.

Institutional & Insider Ownership

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vornado Realty Trust	$1.81 billion	3.63	$904.96 million	$0.02	1,757.60
JBG SMITH Properties	$508.41 million	1.39	-$139.06 million	($2.61)	-4.62

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vornado Realty Trust	3.71%	1.37%	0.43%
JBG SMITH Properties	-29.89%	-13.31%	-3.49%

Summary

Vornado Realty Trust beats JBG SMITH Properties on 12 of the 16 factors compared between the two stocks.

About Vornado Realty Trust

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

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.