Contrasting Easterly Government Properties (NYSE:DEA) and JBG SMITH Properties (NYSE:JBGS)

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

Analyst Ratings

This is a summary of recent ratings for JBG SMITH Properties and Easterly Government 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
Easterly Government Properties	2	3	1	0	1.83

JBG SMITH Properties presently has a consensus price target of $12.50, indicating a potential upside of 2.69%. Easterly Government Properties has a consensus price target of $25.60, indicating a potential upside of 14.40%. Given Easterly Government Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Easterly Government Properties is more favorable than JBG SMITH Properties.

Insider & Institutional Ownership

98.5% of JBG SMITH Properties shares are held by institutional investors. Comparatively, 86.5% of Easterly Government Properties shares are held by institutional investors. 11.9% of JBG SMITH Properties shares are held by company insiders. Comparatively, 6.5% of Easterly Government Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

JBG SMITH Properties has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Easterly Government Properties has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Valuation & Earnings

This table compares JBG SMITH Properties and Easterly Government Properties”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JBG SMITH Properties	$498.60 million	1.41	-$139.06 million	($3.54)	-3.44
Easterly Government Properties	$336.10 million	3.15	$13.00 million	$0.31	72.19

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JBG SMITH Properties	-39.73%	-18.71%	-4.78%
Easterly Government Properties	3.98%	1.07%	0.43%

Dividends

JBG SMITH Properties pays an annual dividend of $0.70 per share and has a dividend yield of 5.8%. Easterly Government Properties pays an annual dividend of $1.80 per share and has a dividend yield of 8.0%. JBG SMITH Properties pays out -19.8% of its earnings in the form of a dividend. Easterly Government Properties pays out 580.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Easterly Government Properties beats JBG SMITH Properties on 11 of the 16 factors compared between the two stocks.

About JBG SMITH Properties

JBG SMITH Properties is a real estate investment trust that owns, operates and develops residential, office and retail properties. Its portfolio is concentrated in the Washington, D.C., metropolitan area, with a significant presence in National Landing, Virginia, as well as properties in the District and suburban Maryland. The company focuses on urban, mixed-use and transit-oriented communities, serving residents, businesses and retail tenants. Its activities include leasing and managing existing properties and developing projects intended to bring housing, workplaces and services together.

About Easterly Government Properties

Easterly Government Properties is a real estate investment trust (REIT) that owns, acquires and develops properties leased primarily to U.S. government agencies. Its portfolio focuses on facilities that support essential government operations, including offices and specialized-use buildings. The company generally seeks long-term leases with government tenants and properties designed or adapted for their operational needs. Its tenants include federal agencies and other government organizations. Founded in 2011, Easterly invests in properties across the United States.