JBG SMITH Properties (NYSE:JBGS – Get Free Report) and Global Net Lease (NYSE:GNL – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.
Institutional and Insider Ownership
98.5% of JBG SMITH Properties shares are owned by institutional investors. Comparatively, 61.2% of Global Net Lease shares are owned by institutional investors. 11.9% of JBG SMITH Properties shares are owned by insiders. Comparatively, 0.6% of Global Net Lease shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares JBG SMITH Properties and Global Net Lease”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| JBG SMITH Properties | $498.60 million | 1.66 | -$139.06 million | ($1.87) | -7.60 |
| Global Net Lease | $495.29 million | 3.95 | -$225.46 million | ($0.40) | -23.09 |
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.
Analyst Ratings
This is a breakdown of recent ratings and target prices for JBG SMITH Properties and Global Net Lease, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| JBG SMITH Properties | 2 | 0 | 0 | 0 | 1.00 |
| Global Net Lease | 0 | 1 | 4 | 1 | 3.00 |
JBG SMITH Properties presently has a consensus target price of $18.50, indicating a potential upside of 30.13%. Global Net Lease has a consensus target price of $10.40, indicating a potential upside of 12.62%. Given JBG SMITH Properties’ higher possible upside, research analysts plainly believe JBG SMITH Properties is more favorable than Global Net Lease.
Profitability
This table compares JBG SMITH Properties and Global Net Lease’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| JBG SMITH Properties | -22.16% | -9.32% | -2.53% |
| Global Net Lease | -8.72% | -2.90% | -1.07% |
Dividends
JBG SMITH Properties pays an annual dividend of $0.70 per share and has a dividend yield of 4.9%. Global Net Lease pays an annual dividend of $0.76 per share and has a dividend yield of 8.2%. JBG SMITH Properties pays out -37.4% of its earnings in the form of a dividend. Global Net Lease pays out -190.0% 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. Global Net Lease is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
JBG SMITH Properties has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Global Net Lease has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
Summary
Global Net Lease beats JBG SMITH Properties on 10 of the 17 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 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.
Receive News & Ratings for JBG SMITH Properties Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for JBG SMITH Properties and related companies with MarketBeat.com's FREE daily email newsletter.
