Healthcare Trust Of America (NYSE:HTA) and JBG SMITH Properties (NYSE:JBGS) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Volatility and Risk

Healthcare Trust Of America has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500. Comparatively, JBG SMITH Properties has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500.

Institutional and Insider Ownership

78.7% of JBG SMITH Properties shares are owned by institutional investors. 0.9% of Healthcare Trust Of America shares are owned by company insiders. Comparatively, 13.3% of JBG SMITH Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Healthcare Trust Of America and JBG SMITH Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Healthcare Trust Of America 0 6 3 0 2.33
JBG SMITH Properties 1 0 0 0 1.00

Healthcare Trust Of America currently has a consensus price target of $30.56, indicating a potential upside of 17.84%. JBG SMITH Properties has a consensus price target of $34.00, indicating a potential downside of 7.58%. Given Healthcare Trust Of America’s stronger consensus rating and higher probable upside, research analysts clearly believe Healthcare Trust Of America is more favorable than JBG SMITH Properties.

Profitability

This table compares Healthcare Trust Of America and JBG SMITH Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Healthcare Trust Of America 11.65% 2.46% 1.28%
JBG SMITH Properties -11.07% -2.33% -1.16%

Dividends

Healthcare Trust Of America pays an annual dividend of $1.24 per share and has a dividend yield of 4.8%. JBG SMITH Properties pays an annual dividend of $0.90 per share and has a dividend yield of 2.4%. Healthcare Trust Of America pays out 76.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthcare Trust Of America has raised its dividend for 5 consecutive years. Healthcare Trust Of America is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Healthcare Trust Of America and JBG SMITH Properties’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Healthcare Trust Of America $613.99 million 8.76 $63.91 million $1.63 15.91
JBG SMITH Properties $543.01 million 8.15 -$71.75 million N/A N/A

Healthcare Trust Of America has higher revenue and earnings than JBG SMITH Properties.

Summary

Healthcare Trust Of America beats JBG SMITH Properties on 12 of the 16 factors compared between the two stocks.

Healthcare Trust Of America Company Profile

Healthcare Trust of America, Inc. (NYSE: HTA) is the largest dedicated owner and operator of medical office buildings in the United States, comprising over 24.2 million square feet of GLA, with over $7.0 billion invested primarily in medical office buildings. HTA provides real estate infrastructure for the integrated delivery of healthcare services in highly-desirable locations. Investments are targeted to build critical mass in 20 to 25 leading gateway markets that generally have leading university and medical institutions which translates to superior demographics, high-quality graduates, intellectual talent and job growth. The strategic markets HTA invests in support a strong, long-term demand for quality medical office space. HTA utilizes an integrated asset management platform consisting of on-site leasing, property management, engineering and building services, and development capabilities to create complete, state of the art facilities in each market. This drives efficiencies, strong tenant and health system relationships, and strategic partnerships that result in high levels of tenant retention, rental growth and long-term value creation. Headquartered in Scottsdale, Arizona, HTA has developed a national brand with dedicated relationships at the local level. Founded in 2006 and listed on the New York Stock Exchange in 2012, HTA has produced attractive returns for its stockholders that have significantly outperformed the S&P 500 and US REIT indices.

JBG SMITH Properties Company Profile

JBG SMITH Properties, a real estate investment trust (REIT), owns, operates, invests in, and develops real estate assets in Washington, the United States. The company's assets consist of office, multifamily, and retail properties. As of December 31, 2017, its operating portfolio consisted of 69 operating assets comprising 51 office assets, 14 multifamily assets, and 4 other assets. JBG SMITH Properties also provides real estate services. The company qualifies as a REIT for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. JBG SMITH Properties was founded in 2016 and is headquartered in Chevy Chase, Maryland.

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