Critical Analysis: JBG SMITH Properties (NYSE:JBGS) & Claros Mortgage Trust (NYSE:CMTG)

JBG SMITH Properties (NYSE:JBGS) and Claros Mortgage Trust (NYSE:CMTG) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Volatility and Risk

JBG SMITH Properties has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Claros Mortgage Trust has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.

Valuation and Earnings

This table compares JBG SMITH Properties and Claros Mortgage Trust”s gross 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	1.80	-$139.06 million	($2.11)	-7.22
Claros Mortgage Trust	$187.83 million	1.98	-$489.07 million	($3.49)	-0.76

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

Insider & Institutional Ownership

98.5% of JBG SMITH Properties shares are held by institutional investors. Comparatively, 89.5% of Claros Mortgage Trust shares are held by institutional investors. 11.9% of JBG SMITH Properties shares are held by company insiders. Comparatively, 1.8% of Claros Mortgage Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for JBG SMITH Properties and Claros Mortgage Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JBG SMITH Properties	2	0	0	0	1.00
Claros Mortgage Trust	3	0	1	0	1.50

JBG SMITH Properties presently has a consensus price target of $18.50, indicating a potential upside of 21.43%. Claros Mortgage Trust has a consensus price target of $3.00, indicating a potential upside of 12.99%. Given JBG SMITH Properties’ higher probable upside, equities analysts plainly believe JBG SMITH Properties is more favorable than Claros Mortgage Trust.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JBG SMITH Properties	-27.89%	-10.61%	-3.08%
Claros Mortgage Trust	-260.38%	-15.72%	-4.84%

Summary

JBG SMITH Properties beats Claros Mortgage Trust on 9 of the 14 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 Claros Mortgage Trust

Claros Mortgage Trust, Inc. operates as a real estate investment trust. It focuses on originating senior and subordinate loans on transitional commercial real estate assets in the United States. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was incorporated in 2015 and is headquartered in New York, New York.