Head to Head Comparison: JBG SMITH Properties (NYSE:JBGS) vs. Hudson Pacific Properties (NYSE:HPP)

JBG SMITH Properties (NYSE:JBGS) and Hudson Pacific Properties (NYSE:HPP) are both small-cap real estate companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.

Institutional and Insider Ownership

98.5% of JBG SMITH Properties shares are held by institutional investors. Comparatively, 97.6% of Hudson Pacific Properties shares are held by institutional investors. 11.9% of JBG SMITH Properties shares are held by company insiders. Comparatively, 2.5% of Hudson Pacific Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for JBG SMITH Properties and Hudson Pacific Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JBG SMITH Properties	3	0	0	0	1.00
Hudson Pacific Properties	3	6	4	0	2.08

JBG SMITH Properties currently has a consensus target price of $12.50, suggesting a potential upside of 14.44%. Hudson Pacific Properties has a consensus target price of $15.82, suggesting a potential upside of 32.47%. Given Hudson Pacific Properties’ stronger consensus rating and higher possible upside, analysts clearly believe Hudson Pacific Properties is more favorable than JBG SMITH Properties.

Valuation & Earnings

This table compares JBG SMITH Properties and Hudson Pacific Properties”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	1.28	-$139.06 million	($2.61)	-4.19
Hudson Pacific Properties	$831.10 million	0.78	-$561.69 million	($8.85)	-1.35

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JBG SMITH Properties	-29.89%	-13.31%	-3.49%
Hudson Pacific Properties	-70.04%	-20.76%	-7.73%

Risk & Volatility

JBG SMITH Properties has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Hudson Pacific Properties has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500.

Summary

JBG SMITH Properties beats Hudson Pacific Properties on 8 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 Hudson Pacific Properties

Hudson Pacific Properties (NYSE: HPP) is a real estate investment trust serving dynamic tech and media tenants in global epicenters for these synergistic, converging and secular growth industries. Hudson Pacific's unique and high-barrier tech and media focus leverages a full-service, end-to-end value creation platform forged through deep strategic relationships and niche expertise across identifying, acquiring, transforming and developing properties into world-class amenitized, collaborative and sustainable office and studio space.