JBG SMITH Properties (NYSE:JBGS – Get Free Report) and Orion Office REIT (NYSE:ONL – Get Free Report) are both small-cap real estate companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, dividends, profitability, earnings and risk.
Analyst Recommendations
This is a summary of current ratings and recommmendations for JBG SMITH Properties and Orion Office REIT, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| JBG SMITH Properties | 3 | 0 | 0 | 0 | 1.00 |
| Orion Office REIT | 1 | 0 | 1 | 0 | 2.00 |
JBG SMITH Properties currently has a consensus target price of $14.67, suggesting a potential upside of 32.91%. Orion Office REIT has a consensus target price of $3.50, suggesting a potential upside of 35.40%. Given Orion Office REIT’s stronger consensus rating and higher possible upside, analysts clearly believe Orion Office REIT is more favorable than JBG SMITH Properties.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| JBG SMITH Properties | -29.89% | -13.31% | -3.49% |
| Orion Office REIT | -65.66% | -14.85% | -7.95% |
Dividends
JBG SMITH Properties pays an annual dividend of $0.70 per share and has a dividend yield of 6.3%. Orion Office REIT pays an annual dividend of $0.08 per share and has a dividend yield of 3.1%. JBG SMITH Properties pays out -26.8% of its earnings in the form of a dividend. Orion Office REIT pays out -4.7% 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. JBG SMITH Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares JBG SMITH Properties and Orion Office REIT”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 | 1.30 | -$139.06 million | ($2.61) | -4.23 |
| Orion Office REIT | $147.65 million | 0.99 | -$139.31 million | ($1.69) | -1.53 |
JBG SMITH Properties has higher revenue and earnings than Orion Office REIT. JBG SMITH Properties is trading at a lower price-to-earnings ratio than Orion Office REIT, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
JBG SMITH Properties has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Orion Office REIT has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500.
Insider and Institutional Ownership
98.5% of JBG SMITH Properties shares are owned by institutional investors. Comparatively, 79.9% of Orion Office REIT shares are owned by institutional investors. 11.9% of JBG SMITH Properties shares are owned by company insiders. Comparatively, 1.6% of Orion Office REIT shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
JBG SMITH Properties beats Orion Office REIT on 10 of the 16 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 Orion Office REIT
Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.
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