Financial Review: JBG SMITH Properties (NYSE:JBGS) & Hudson Pacific Properties (NYSE:HPP)

Hudson Pacific Properties (NYSE:HPP) and JBG SMITH Properties (NYSE:JBGS) are both small-cap real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

This table compares Hudson Pacific Properties and JBG SMITH Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hudson Pacific Properties	-70.04%	-20.76%	-7.73%
JBG SMITH Properties	-29.89%	-13.31%	-3.49%

Institutional and Insider Ownership

97.6% of Hudson Pacific Properties shares are owned by institutional investors. Comparatively, 98.5% of JBG SMITH Properties shares are owned by institutional investors. 2.5% of Hudson Pacific Properties 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Hudson Pacific Properties has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500. Comparatively, JBG SMITH Properties has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Hudson Pacific Properties and JBG SMITH Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hudson Pacific Properties	3	6	4	0	2.08
JBG SMITH Properties	3	0	0	0	1.00

Hudson Pacific Properties presently has a consensus target price of $15.82, suggesting a potential upside of 32.61%. JBG SMITH Properties has a consensus target price of $12.50, suggesting a potential upside of 13.08%. Given Hudson Pacific Properties’ stronger consensus rating and higher possible upside, research analysts clearly believe Hudson Pacific Properties is more favorable than JBG SMITH Properties.

Earnings & Valuation

This table compares Hudson Pacific Properties and JBG SMITH Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hudson Pacific Properties	$831.10 million	0.78	-$561.69 million	($8.85)	-1.35
JBG SMITH Properties	$508.41 million	1.27	-$139.06 million	($2.61)	-4.24

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

Summary

JBG SMITH Properties beats Hudson Pacific Properties on 8 of the 14 factors compared between the two stocks.

About Hudson Pacific Properties

Hudson Pacific Properties (NYSE: HPP) is a real estate investment trust serving dynamic tech and media tenants in global epicenters for these synergistic, converging and secular growth industries. Hudson Pacific's unique and high-barrier tech and media focus leverages a full-service, end-to-end value creation platform forged through deep strategic relationships and niche expertise across identifying, acquiring, transforming and developing properties into world-class amenitized, collaborative and sustainable office and studio space.

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.