Franklin Street Properties (NYSE:FSP) & Jernigan Capital (NASDAQ:JCAP) Financial Comparison

Franklin Street Properties (NYSE:FSP) and Jernigan Capital (NASDAQ:JCAP) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Franklin Street Properties and Jernigan Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin Street Properties	-43.90%	-7.79%	-5.30%
Jernigan Capital	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Franklin Street Properties and Jernigan Capital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Street Properties	0	0	0	0	0.00
Jernigan Capital	0	1	6	1	3.00

Jernigan Capital has a consensus price target of $25.20, indicating a potential upside of 18.42%. Given Jernigan Capital’s stronger consensus rating and higher probable upside, analysts plainly believe Jernigan Capital is more favorable than Franklin Street Properties.

Dividends

Franklin Street Properties pays an annual dividend of $0.04 per share and has a dividend yield of 6.2%. Jernigan Capital pays an annual dividend of $0.96 per share and has a dividend yield of 4.5%. Franklin Street Properties pays out -9.1% of its earnings in the form of a dividend. Jernigan Capital pays out 45.1% 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. Franklin Street Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

61.4% of Franklin Street Properties shares are owned by institutional investors. 4.9% of Franklin Street Properties shares are owned by insiders. Comparatively, 2.9% of Jernigan Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Franklin Street Properties and Jernigan Capital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franklin Street Properties	$107.16 million	0.63	-$52.72 million	($0.44)	-1.48
Jernigan Capital	$613.29 million	1.92	$187.96 million	$2.13	9.99

Jernigan Capital has higher revenue and earnings than Franklin Street Properties. Franklin Street Properties is trading at a lower price-to-earnings ratio than Jernigan Capital, indicating that it is currently the more affordable of the two stocks.

Summary

Jernigan Capital beats Franklin Street Properties on 12 of the 16 factors compared between the two stocks.

About Franklin Street Properties

Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes.

About Jernigan Capital

Jernigan Capital is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners and operators of self-storage facilities with a view to eventual outright ownership of facilities the Company finances. The Company's mission is to maximize shareholder value by accumulating a multi-billion dollar investment portfolio consisting of the newest, most attractive and best located self-storage facilities in the United States through a talented and experienced team demonstrating the highest levels of integrity, dedication, excellence and community.