Critical Review: JBG SMITH Properties (NYSE:JBGS) & Presidio Property Trust (NASDAQ:SQFT)

Presidio Property Trust (NASDAQ:SQFTGet Free Report) and JBG SMITH Properties (NYSE:JBGSGet Free Report) are both small-cap industrial products companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Dividends

Presidio Property Trust pays an annual dividend of $0.09 per share and has a dividend yield of 8.6%. JBG SMITH Properties pays an annual dividend of $0.90 per share and has a dividend yield of 5.6%. Presidio Property Trust pays out 6.3% of its earnings in the form of a dividend. JBG SMITH Properties pays out -136.4% 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. Presidio Property Trust has raised its dividend for 1 consecutive years. Presidio Property Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Presidio Property Trust and JBG SMITH Properties, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Presidio Property Trust 0 0 0 0 N/A
JBG SMITH Properties 1 0 0 0 1.00

JBG SMITH Properties has a consensus target price of $14.00, suggesting a potential downside of 12.50%. Given JBG SMITH Properties’ higher possible upside, analysts clearly believe JBG SMITH Properties is more favorable than Presidio Property Trust.

Profitability

This table compares Presidio Property Trust and JBG SMITH Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Presidio Property Trust 107.48% -6.80% -1.79%
JBG SMITH Properties -10.86% -2.53% -1.14%

Earnings and Valuation

This table compares Presidio Property Trust and JBG SMITH Properties’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Presidio Property Trust $17.76 million 0.78 -$2.13 million $1.42 0.74
JBG SMITH Properties $605.82 million 2.53 $85.37 million ($0.66) -24.24

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

Institutional & Insider Ownership

9.3% of Presidio Property Trust shares are owned by institutional investors. Comparatively, 97.1% of JBG SMITH Properties shares are owned by institutional investors. 10.6% of Presidio Property Trust shares are owned by company insiders. Comparatively, 2.7% 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.

Volatility and Risk

Presidio Property Trust has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, JBG SMITH Properties has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Summary

JBG SMITH Properties beats Presidio Property Trust on 8 of the 15 factors compared between the two stocks.

About Presidio Property Trust

(Get Free Report)

Presidio is an internally managed, diversified REIT with holdings in model home properties which are triple-net leased to homebuilders, office, industrial, and retail properties. Presidio's model homes are leased to homebuilders located in Arizona, Illinois, Texas, Wisconsin, and Florida. Our office, industrial and retail properties are located primarily in Colorado, with properties also located in Maryland, North Dakota, Texas, and Southern California. While geographical clustering of real estate enables us to reduce our operating costs through economies of scale by servicing several properties with less staff, it makes us susceptible to changing market conditions in these discrete geographic areas, including those that have developed as a result of COVID-19. Presidio owns approximately 6.5% of the outstanding common stock of Conduit Pharmaceuticals Inc., a disease agnostic multi-asset clinical-stage disease-agnostic life science company providing an efficient model for compound development.

About JBG SMITH Properties

(Get Free Report)

JBG SMITH owns, operates, invests in, and develops mixed-use properties in high growth and high barrier-to-entry submarkets in and around Washington, DC. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, amenity-rich, walkable neighborhoods throughout the Washington, DC metropolitan area. Approximately two-thirds of JBG SMITH's holdings are in the National Landing submarket in Northern Virginia, which is anchored by four key demand drivers: Amazon's new headquarters; Virginia Tech's under-construction $1 billion Innovation Campus; the submarket's proximity to the Pentagon; and JBG SMITH's deployment of next-generation public and private 5G digital infrastructure. JBG SMITH's dynamic portfolio currently comprises 14.7 million square feet of high-growth office, multifamily, and retail assets at share, 99% of which are Metro-served. It also maintains a development pipeline encompassing 9.8 million square feet of mixed-use, primarily multifamily, development opportunities. JBG SMITH is committed to the operation and development of green, smart, and healthy buildings and plans to maintain carbon neutral operations annually.

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