Head to Head Analysis: Global Net Lease (NYSE:GNL) vs. JBG SMITH Properties (NYSE:JBGS)

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

Insider & Institutional Ownership

61.2% of Global Net Lease shares are owned by institutional investors. Comparatively, 98.5% of JBG SMITH Properties shares are owned by institutional investors. 0.6% of Global Net Lease 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 will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Global Net Lease and JBG SMITH Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Net Lease	0	1	4	1	3.00
JBG SMITH Properties	2	0	0	0	1.00

Global Net Lease currently has a consensus price target of $10.40, indicating a potential upside of 13.97%. JBG SMITH Properties has a consensus price target of $18.50, indicating a potential upside of 24.17%. Given JBG SMITH Properties’ higher possible upside, analysts plainly believe JBG SMITH Properties is more favorable than Global Net Lease.

Risk & Volatility

Global Net Lease has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, JBG SMITH Properties has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Profitability

This table compares Global Net Lease and JBG SMITH Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Net Lease	-8.72%	-2.90%	-1.07%
JBG SMITH Properties	-22.16%	-9.32%	-2.53%

Dividends

Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 8.3%. JBG SMITH Properties pays an annual dividend of $0.70 per share and has a dividend yield of 4.7%. Global Net Lease pays out -190.0% of its earnings in the form of a dividend. JBG SMITH Properties pays out -37.4% 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. Global Net Lease is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Global Net Lease and JBG SMITH Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Net Lease	$495.29 million	3.90	-$225.46 million	($0.40)	-22.81
JBG SMITH Properties	$498.60 million	1.74	-$139.06 million	($1.87)	-7.97

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

Summary

Global Net Lease beats JBG SMITH Properties on 10 of the 17 factors compared between the two stocks.

About Global Net Lease

Global Net Lease, Inc. (NYSE: GNL) is a publicly traded real estate investment trust listed on the NYSE. The firm focused on acquiring a diversified global portfolio of commercial properties, with an emphasis on sale-leaseback transactions involving single tenant, mission critical income producing net-leased assets across the United States, Western and Northern Europe.

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.