Reviewing Chimera Investment (NYSE:CIM) and JBG SMITH Properties (NYSE:JBGS)

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

Profitability

This table compares JBG SMITH Properties and Chimera Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JBG SMITH Properties	-25.40%	-6.64%	-2.69%
Chimera Investment	25.73%	7.46%	1.48%

Volatility and Risk

JBG SMITH Properties has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Chimera Investment has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500.

Valuation & Earnings

This table compares JBG SMITH Properties and Chimera Investment’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JBG SMITH Properties	$579.65 million	2.66	-$79.98 million	($1.39)	-12.56
Chimera Investment	$286.07 million	4.32	$126.10 million	$1.53	10.05

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

Institutional & Insider Ownership

98.5% of JBG SMITH Properties shares are held by institutional investors. Comparatively, 48.4% of Chimera Investment shares are held by institutional investors. 3.7% of JBG SMITH Properties shares are held by company insiders. Comparatively, 0.9% of Chimera Investment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

JBG SMITH Properties pays an annual dividend of $0.70 per share and has a dividend yield of 4.0%. Chimera Investment pays an annual dividend of $1.40 per share and has a dividend yield of 9.1%. JBG SMITH Properties pays out -50.4% of its earnings in the form of a dividend. Chimera Investment pays out 91.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of recent recommendations for JBG SMITH Properties and Chimera Investment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JBG SMITH Properties	1	0	0	0	1.00
Chimera Investment	0	2	0	0	2.00

JBG SMITH Properties presently has a consensus target price of $14.50, suggesting a potential downside of 16.95%. Chimera Investment has a consensus target price of $16.25, suggesting a potential upside of 5.73%. Given Chimera Investment’s stronger consensus rating and higher probable upside, analysts plainly believe Chimera Investment is more favorable than JBG SMITH Properties.

Summary

Chimera Investment beats JBG SMITH Properties on 11 of the 15 factors compared between the two stocks.

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.

About Chimera Investment

Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. The company, through its subsidiaries, invests in a portfolio of mortgage assets, including residential mortgage loans, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, agency mortgage-backed securities secured by pools of commercial mortgage loans, business purpose and investor loans, and other real estate related securities. It invests in investment grade, non-investment grade, and non-rated classes. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, it intends to distribute at least 90% of its taxable income as dividends to shareholders. Chimera Investment Corporation was incorporated in 2007 and is headquartered in New York, New York.