JBG SMITH Properties (NYSE:JBGS) and BRT Apartments (NYSE:BRT) Head-To-Head Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BRT Apartments	-9.94%	-4.33%	-1.34%
JBG SMITH Properties	-20.60%	-5.56%	-2.17%

Earnings and Valuation

This table compares BRT Apartments and JBG SMITH Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRT Apartments	$93.62 million	3.53	$3.87 million	($0.53)	-33.18
JBG SMITH Properties	$604.20 million	2.16	-$79.98 million	($1.30)	-11.87

BRT Apartments has higher earnings, but lower revenue than JBG SMITH Properties. BRT Apartments 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.

Institutional and Insider Ownership

29.1% of BRT Apartments shares are held by institutional investors. Comparatively, 98.5% of JBG SMITH Properties shares are held by institutional investors. 40.2% of BRT Apartments shares are held by company insiders. Comparatively, 3.7% of JBG SMITH Properties shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

BRT Apartments has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, JBG SMITH Properties has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Dividends

BRT Apartments pays an annual dividend of $1.00 per share and has a dividend yield of 5.7%. JBG SMITH Properties pays an annual dividend of $0.70 per share and has a dividend yield of 4.5%. BRT Apartments pays out -188.7% of its earnings in the form of a dividend. JBG SMITH Properties pays out -53.8% 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. BRT Apartments is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent recommendations and price targets for BRT Apartments and JBG SMITH Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRT Apartments	0	0	2	0	3.00
JBG SMITH Properties	2	0	0	0	1.00

BRT Apartments presently has a consensus price target of $23.00, indicating a potential upside of 30.79%. JBG SMITH Properties has a consensus price target of $16.00, indicating a potential upside of 3.66%. Given BRT Apartments’ stronger consensus rating and higher possible upside, equities analysts clearly believe BRT Apartments is more favorable than JBG SMITH Properties.

Summary

BRT Apartments beats JBG SMITH Properties on 13 of the 16 factors compared between the two stocks.

About BRT Apartments

BRT Apartments Corp. is a real estate investment trust. It engages in the ownership, operation, and holding interests in joint ventures that own and operate multi-family properties. The company was founded in June 1972 and is headquartered in Great Neck, NY.

About JBG SMITH Properties

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.