Contrasting Mackenzie Realty Capital (NASDAQ:MKZR) and JBG SMITH Properties (NYSE:JBGS)

Mackenzie Realty Capital (NASDAQ:MKZR) and JBG SMITH Properties (NYSE:JBGS) are both small-cap real estate companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.

Insider & Institutional Ownership

98.5% of JBG SMITH Properties shares are owned by institutional investors. 9.0% of Mackenzie Realty Capital shares are owned by insiders. Comparatively, 11.9% of JBG SMITH Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Mackenzie Realty Capital has a beta of -0.37, meaning that its stock price is 137% less volatile than the S&P 500. Comparatively, JBG SMITH Properties has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mackenzie Realty Capital	$20.01 million	0.16	-$17.54 million	($9.53)	-0.12
JBG SMITH Properties	$498.60 million	1.41	-$139.06 million	($3.54)	-3.44

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

Dividends

Mackenzie Realty Capital pays an annual dividend of $2.00 per share and has a dividend yield of 174.7%. JBG SMITH Properties pays an annual dividend of $0.70 per share and has a dividend yield of 5.7%. Mackenzie Realty Capital pays out -21.0% of its earnings in the form of a dividend. JBG SMITH Properties pays out -19.8% 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. Mackenzie Realty Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings for Mackenzie Realty Capital and JBG SMITH Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mackenzie Realty Capital	1	0	0	0	1.00
JBG SMITH Properties	3	0	0	0	1.00

JBG SMITH Properties has a consensus price target of $12.50, indicating a potential upside of 2.50%. Given JBG SMITH Properties’ higher probable upside, analysts plainly believe JBG SMITH Properties is more favorable than Mackenzie Realty Capital.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mackenzie Realty Capital	-82.40%	-19.33%	-6.91%
JBG SMITH Properties	-39.73%	-18.71%	-4.78%

Summary

JBG SMITH Properties beats Mackenzie Realty Capital on 10 of the 14 factors compared between the two stocks.

About Mackenzie Realty Capital

Mackenzie Realty Capital, Inc. is a real estate investment company that focuses on acquiring, owning and managing income-producing real estate assets. The company’s activities include evaluating real estate investment opportunities, developing a portfolio of properties and overseeing property operations with the goal of generating rental income and long-term value for shareholders. Publicly available information about Mackenzie Realty Capital’s specific property types, geographic focus and leadership is limited.

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.