Analyzing Washington Real Estate Investment Trust (NYSE:WRE) and JBG SMITH Properties (NYSE:JBGS)
Washington Real Estate Investment Trust (NYSE:WRE – Get Rating) and JBG SMITH Properties (NYSE:JBGS – Get Rating) are both mid-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.
Volatility and Risk
Washington Real Estate Investment Trust has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, JBG SMITH Properties has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500
dividends
Washington Real Estate Investment Trust pays an annual dividend of $0.68 per share and has a dividend yield of 2.8%. JBG SMITH Properties pays an annual dividend of $0.90 per share and has a dividend yield of 3.4%. Washington Real Estate Investment Trust pays out 566.7% 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 -187.5% of its earnings in the form of a dividend. JBG SMITH Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insiders & Institutional Ownership
90.8% of Washington Real Estate Investment Trust shares are held by institutional investors. Comparatively, 88.8% of JBG SMITH Properties shares are held by institutional investors. 1.0% of Washington Real Estate Investment Trust shares are held by insiders. Comparatively, 6.1% of JBG SMITH Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
profitability
This table compares Washington Real Estate Investment Trust and JBG SMITH Properties’ net margins, return on equity and return on assets.
| net margins | return on equity | return on assets | |
| Washington Real Estate Investment Trust | 5.56% | -4.11% | -2.69% |
| JBG SMITH Properties | -9.28% | -1.94% | -0.95% |
Earnings and Valuation
This table compares Washington Real Estate Investment Trust and JBG SMITH Properties’ revenue, earnings per share and valuation.
| Gross revenue | Price/sales ratio | Net Income | Earnings Per Share | Price/earnings ratio | |
| Washington Real Estate Investment Trust | $169.15 million | 12.70 | $16.38 million | $0.12 | 204.75 |
| JBG SMITH Properties | $634.36 million | 5.11 | -$79.26 million | ($0.48) | -54.63 |
Washington Real Estate Investment Trust has higher earnings but lower revenue than JBG SMITH Properties. JBG SMITH Properties is trading at a lower price-to-earnings ratio than Washington Real Estate Investment Trust, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations for Washington Real Estate Investment Trust and JBG SMITH Properties, as reported by MarketBeat.com.
| sell ratings | hold ratings | Buy rating | Strong Buy Ratings | rating score | |
| Washington Real Estate Investment Trust | 0 | 3 | 1 | 0 | 2.25 |
| JBG SMITH Properties | 0 | 1 | 1 | 0 | 2.50 |
Washington Real Estate Investment Trust currently has a consensus target price of $26.33, indicating a potential upside of 7.18%. JBG SMITH Properties has a consensus target price of $33.00, indicating a potential upside of 25.86%. Given JBG SMITH Properties’ stronger consensus rating and higher probable upside, analysts clearly believe JBG SMITH Properties is more favorable than Washington Real Estate Investment Trust.
Summary
JBG SMITH Properties beats Washington Real Estate Investment Trust on 9 of the 15 factors compared between the two stocks.
About Washington Real Estate Investment Trust (Get Rating)
WashREIT owns and operates uniquely positioned real estate assets in the Washington Metro area. Backed by decades of experience, expertise and ambition, we create value by transforming insights into strategy and strategy into action. As of October 29, 2020, the Company’s portfolio of 45 properties includes approximately 3.7 million square feet of commercial space and 6,863 multifamily apartment units. These 45 properties consist of 22 multifamily properties, 15 office properties, and 8 retail centers. Our shares trade on the NYSE. With a track record of driving returns and delivering satisfaction, we are a trusted authority in one of the nation’s most competitive real estate markets.
About JBG SMITH Properties (Get Rating)
JBG SMITH is an S&P 400 company that owns, operates, invests in and develops a dynamic portfolio of high-growth mixed-use properties in and around Washington, DC. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, amenity-rich, walkable neighborhoods throughout the Capital region, including National Landing where it serves as the exclusive developer for Amazon’s new headquarters. JBG SMITH’s portfolio currently comprises 20.7 million square feet of high-growth office, multifamily and retail assets, 98% at our share of which are Metro-served. It also maintains a development pipeline encompassing 17.1 million square feet of mixed-use development opportunities.
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