Comparing RLJ Lodging Trust (NYSE:RLJ) and JBG SMITH Properties (NYSE:JBGS)

JBG SMITH Properties (NYSE:JBGSGet Free Report) and RLJ Lodging Trust (NYSE:RLJGet Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
JBG SMITH Properties -22.37% -5.66% -2.39%
RLJ Lodging Trust 5.29% 3.53% 1.44%

Insider & Institutional Ownership

98.5% of JBG SMITH Properties shares are held by institutional investors. Comparatively, 92.4% of RLJ Lodging Trust shares are held by institutional investors. 3.7% of JBG SMITH Properties shares are held by company insiders. Comparatively, 3.0% of RLJ Lodging Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

JBG SMITH Properties has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, RLJ Lodging Trust has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for JBG SMITH Properties and RLJ Lodging Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JBG SMITH Properties 1 0 0 0 1.00
RLJ Lodging Trust 0 2 4 0 2.67

JBG SMITH Properties presently has a consensus target price of $14.50, indicating a potential downside of 6.81%. RLJ Lodging Trust has a consensus target price of $13.58, indicating a potential upside of 44.97%. Given RLJ Lodging Trust’s stronger consensus rating and higher probable upside, analysts plainly believe RLJ Lodging Trust is more favorable than JBG SMITH Properties.

Valuation & Earnings

This table compares JBG SMITH Properties and RLJ Lodging 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 $604.20 million 2.28 -$79.98 million ($1.39) -11.19
RLJ Lodging Trust $1.33 billion 1.10 $76.40 million $0.28 33.46

RLJ Lodging Trust has higher revenue and earnings than JBG SMITH Properties. JBG SMITH Properties is trading at a lower price-to-earnings ratio than RLJ Lodging 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 4.5%. RLJ Lodging Trust pays an annual dividend of $0.40 per share and has a dividend yield of 4.3%. JBG SMITH Properties pays out -50.4% of its earnings in the form of a dividend. RLJ Lodging Trust pays out 142.9% 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.

Summary

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

About JBG SMITH Properties

(Get Free Report)

JBG SMITH owns, operates, invests in, and develops mixed-use properties in high growth and high barrier-to-entry submarkets in and around Washington, DC, most notably National Landing. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, amenity-rich, walkable neighborhoods throughout the Washington, DC metropolitan area. Approximately 75.0% of JBG SMITH's holdings are in the National Landing submarket in Northern Virginia, which is anchored by four key demand drivers: Amazon's new headquarters; Virginia Tech's under-construction $1 billion Innovation Campus; the submarket's proximity to the Pentagon; and JBG SMITH's deployment of 5G digital infrastructure. JBG SMITH's dynamic portfolio currently comprises 14.2 million square feet of high-growth office, multifamily, and retail assets at share, 99% of which are Metro-served. It also maintains a development pipeline encompassing 8.8 million square feet of mixed-use, primarily multifamily, development opportunities. JBG SMITH is committed to the operation and development of green, smart, and healthy buildings and plans to maintain carbon neutral operations annually.

About RLJ Lodging Trust

(Get Free Report)

RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. The Company's portfolio currently consists of 96 hotels with approximately 21,200 rooms, located in 23 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms.

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