Vornado Realty Trust (NYSE:VNO) & JBG SMITH Properties (NYSE:JBGS) Financial Analysis

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

Risk and Volatility

JBG SMITH Properties has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Vornado Realty Trust has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JBG SMITH Properties	$498.60 million	1.38	-$139.06 million	($2.61)	-4.51
Vornado Realty Trust	$1.81 billion	3.77	$904.96 million	$0.02	1,827.50

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.

Dividends

JBG SMITH Properties pays an annual dividend of $0.70 per share and has a dividend yield of 5.9%. Vornado Realty Trust pays an annual dividend of $0.74 per share and has a dividend yield of 2.0%. JBG SMITH Properties pays out -26.8% of its earnings in the form of a dividend. 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

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

Profitability

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

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for JBG SMITH Properties and Vornado Realty Trust, as reported by MarketBeat.

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

JBG SMITH Properties currently has a consensus price target of $16.67, indicating a potential upside of 41.60%. Vornado Realty Trust has a consensus price target of $39.91, indicating a potential upside of 9.19%. Given JBG SMITH Properties’ higher probable upside, equities research analysts plainly believe JBG SMITH Properties is more favorable than Vornado Realty Trust.

Summary

Vornado Realty Trust beats JBG SMITH Properties on 11 of the 16 factors compared between the two stocks.

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.

About Vornado Realty Trust

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