Critical Comparison: Community Healthcare Trust (NYSE:CHCT) & JBG SMITH Properties (NYSE:JBGS)

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

Earnings and Valuation

This table compares Community Healthcare Trust and JBG SMITH Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Healthcare Trust	$115.79 million	3.78	-$3.18 million	($0.39)	-39.53
JBG SMITH Properties	$547.31 million	2.42	-$143.53 million	($1.89)	-11.34

Community Healthcare Trust has higher earnings, but lower revenue than JBG SMITH Properties. Community Healthcare Trust 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.

Dividends

Community Healthcare Trust pays an annual dividend of $1.89 per share and has a dividend yield of 12.3%. JBG SMITH Properties pays an annual dividend of $0.70 per share and has a dividend yield of 3.3%. Community Healthcare Trust pays out -484.6% of its earnings in the form of a dividend. JBG SMITH Properties pays out -37.0% 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. Community Healthcare Trust has increased its dividend for 3 consecutive years. Community Healthcare Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Community Healthcare Trust and JBG SMITH Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Healthcare Trust	-6.25%	-1.59%	-0.75%
JBG SMITH Properties	-29.54%	-9.20%	-3.12%

Risk & Volatility

Community Healthcare Trust has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, JBG SMITH Properties has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Community Healthcare Trust and JBG SMITH Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Healthcare Trust	0	0	2	0	3.00
JBG SMITH Properties	2	0	0	0	1.00

Community Healthcare Trust presently has a consensus target price of $18.00, indicating a potential upside of 16.77%. JBG SMITH Properties has a consensus target price of $16.00, indicating a potential downside of 25.38%. Given Community Healthcare Trust’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Community Healthcare Trust is more favorable than JBG SMITH Properties.

Insider and Institutional Ownership

87.8% of Community Healthcare Trust shares are owned by institutional investors. Comparatively, 98.5% of JBG SMITH Properties shares are owned by institutional investors. 5.1% of Community Healthcare Trust shares are owned by company insiders. Comparatively, 4.4% of JBG SMITH Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Community Healthcare Trust beats JBG SMITH Properties on 13 of the 17 factors compared between the two stocks.

About Community Healthcare Trust

Community Healthcare Trust Incorporated (the Company”, we”, our”) was organized in the State of Maryland on March 28, 2014. The Company is a fully-integrated healthcare real estate company that owns and acquires real estate properties that are leased to hospitals, doctors, healthcare systems or other healthcare service providers. As of March 31, 2024, the Company had investments of approximately $1.1 billion in 197 real estate properties (including a portion of one property accounted for as a sales-type lease with a gross amount totaling approximately $3.0 million and two properties classified as an asset held for sale with an aggregate amount totaling approximately $7.5 million. The properties are located in 35 states, totaling approximately 4.4 million square feet in the aggregate and were approximately 92.3% leased, excluding real estate assets held for sale, at March 31, 2024 with a weighted average remaining lease term of approximately 6.9 years.

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.