Comparing JBG SMITH Properties (NYSE:JBGS) & Net Lease Office Properties (NYSE:NLOP)

Net Lease Office Properties (NYSE:NLOP) and JBG SMITH Properties (NYSE:JBGS) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Net Lease Office Properties and JBG SMITH Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Net Lease Office Properties	0	0	1	0	3.00
JBG SMITH Properties	2	0	0	0	1.00

Net Lease Office Properties currently has a consensus price target of $46.00, suggesting a potential upside of 44.01%. JBG SMITH Properties has a consensus price target of $16.00, suggesting a potential upside of 4.54%. Given Net Lease Office Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Net Lease Office Properties is more favorable than JBG SMITH Properties.

Institutional & Insider Ownership

58.3% of Net Lease Office Properties shares are owned by institutional investors. Comparatively, 98.5% of JBG SMITH Properties shares are owned by institutional investors. 3.7% of JBG SMITH Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Net Lease Office Properties and JBG SMITH Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Net Lease Office Properties	$160.91 million	2.94	-$131.75 million	N/A	N/A
JBG SMITH Properties	$604.20 million	2.14	-$79.98 million	($1.30)	-11.77

JBG SMITH Properties has higher revenue and earnings than Net Lease Office Properties.

Profitability

This table compares Net Lease Office Properties and JBG SMITH Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Net Lease Office Properties	-122.90%	-30.16%	-17.58%
JBG SMITH Properties	-20.60%	-5.56%	-2.17%

Dividends

Net Lease Office Properties pays an annual dividend of $0.34 per share and has a dividend yield of 1.1%. JBG SMITH Properties pays an annual dividend of $0.70 per share and has a dividend yield of 4.6%. JBG SMITH Properties pays out -53.8% of its earnings in the form of a dividend.

Volatility and Risk

Net Lease Office Properties has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, JBG SMITH Properties has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Summary

JBG SMITH Properties beats Net Lease Office Properties on 10 of the 14 factors compared between the two stocks.

About Net Lease Office Properties

Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust with a portfolio of 59 high-quality office properties, totaling approximately 8.7 million leasable square feet primarily leased to corporate tenants on a single-tenant net lease basis. The vast majority of the office properties owned by NLOP are located in the U.S., with the balance in Europe. The portfolio consists of 62 corporate tenants operating in a variety of industries, generating annualized based rent (ABR) of approximately $145 million. NLOP's business plan is to focus on realizing value for its shareholders primarily through strategic asset management and disposition of its property portfolio over time. Given WPC's extensive knowledge of the portfolio, NLOP is externally managed and advised by wholly owned affiliates of WPC to successfully execute on its business strategy. Over the course of its 50-year history, WPC has developed significant expertise in the single-tenant office real estate sector, including the operation, leasing, acquisition and development of assets through many market cycles, and has a proven track record of execution.

About JBG SMITH Properties

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, most notably National Landing. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, amenity-rich, walkable neighborhoods throughout the Washington, DC metropolitan area. Approximately 75.0% 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 5G digital infrastructure. JBG SMITH's dynamic portfolio currently comprises 14.2 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 8.8 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.