Contrasting JBG SMITH Properties (NYSE:JBGS) and Highwoods Properties (NYSE:HIW)

Highwoods Properties (NYSE:HIW) and JBG SMITH Properties (NYSE:JBGS) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Valuation and Earnings

This table compares Highwoods Properties and JBG SMITH Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Highwoods Properties	$806.11 million	3.22	$159.61 million	$1.46	16.12
JBG SMITH Properties	$498.60 million	1.88	-$139.06 million	($2.11)	-7.52

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

Dividends

Highwoods Properties pays an annual dividend of $2.00 per share and has a dividend yield of 8.5%. JBG SMITH Properties pays an annual dividend of $0.70 per share and has a dividend yield of 4.4%. Highwoods Properties pays out 137.0% 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 pays out -33.2% of its earnings in the form of a dividend.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Highwoods Properties	20.10%	6.86%	2.64%
JBG SMITH Properties	-27.89%	-10.61%	-3.08%

Insider & Institutional Ownership

96.3% of Highwoods Properties shares are owned by institutional investors. Comparatively, 98.5% of JBG SMITH Properties shares are owned by institutional investors. 1.3% of Highwoods Properties 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 hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Highwoods Properties	0	6	2	0	2.25
JBG SMITH Properties	2	0	0	0	1.00

Highwoods Properties currently has a consensus price target of $27.67, suggesting a potential upside of 17.56%. JBG SMITH Properties has a consensus price target of $18.50, suggesting a potential upside of 16.54%. Given Highwoods Properties’ stronger consensus rating and higher possible upside, research analysts clearly believe Highwoods Properties is more favorable than JBG SMITH Properties.

Risk & Volatility

Highwoods Properties has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, JBG SMITH Properties has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Summary

Highwoods Properties beats JBG SMITH Properties on 12 of the 16 factors compared between the two stocks.

About Highwoods Properties

Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW), fully-integrated office real estate investment trust (REIT) that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa. Highwoods is in the work-placemaking business. We believe that by creating environments and experiences where the best and brightest can achieve together what they cannot apart, we can deliver greater value to our customers, their teammates and, in turn, our stakeholders.

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.