Prologis (NYSE:PLD) and JBG SMITH Properties (NYSE:JBGS) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.
Risk and Volatility
Prologis has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, JBG SMITH Properties has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.
This table compares Prologis and JBG SMITH Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|JBG SMITH Properties||4.94%||0.99%||0.53%|
Insider & Institutional Ownership
95.4% of Prologis shares are owned by institutional investors. Comparatively, 86.3% of JBG SMITH Properties shares are owned by institutional investors. 1.1% of Prologis shares are owned by company insiders. Comparatively, 8.9% of JBG SMITH Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Prologis 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|
|Prologis||$3.33 billion||21.64||$1.57 billion||$3.31||29.47|
|JBG SMITH Properties||$644.18 million||8.78||$39.92 million||$1.73||24.39|
Prologis has higher revenue and earnings than JBG SMITH Properties. JBG SMITH Properties is trading at a lower price-to-earnings ratio than Prologis, indicating that it is currently the more affordable of the two stocks.
Prologis pays an annual dividend of $2.12 per share and has a dividend yield of 2.2%. JBG SMITH Properties pays an annual dividend of $0.90 per share and has a dividend yield of 2.1%. Prologis pays out 64.0% of its earnings in the form of a dividend. JBG SMITH Properties pays out 52.0% 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. Prologis has increased its dividend for 6 consecutive years and JBG SMITH Properties has increased its dividend for 1 consecutive years. Prologis is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of current ratings and target prices for Prologis and JBG SMITH Properties, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|JBG SMITH Properties||0||2||0||0||2.00|
Prologis presently has a consensus price target of $96.54, suggesting a potential downside of 1.04%. JBG SMITH Properties has a consensus price target of $42.00, suggesting a potential downside of 0.45%. Given JBG SMITH Properties’ higher probable upside, analysts plainly believe JBG SMITH Properties is more favorable than Prologis.
Prologis beats JBG SMITH Properties on 14 of the 18 factors compared between the two stocks.
Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of December 31, 2018, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 768 million square feet (71 million square meters) in 19 countries. Prologis leases modern distribution facilities to a diverse base of approximately 5,100 customers across two major categories: business-to-business and retail/online fulfillment.
About JBG SMITH Properties
JBG SMITH Properties, a real estate investment trust (REIT), owns, operates, invests in, and develops real estate assets in Washington, the United States. It operates in three segments: commercial, multifamily, and third-party asset management and real estate services. The company owns and operates a portfolio of commercial, multifamily, and retail assets, as well as provides fee-based real estate services. As of December 31, 2018, its operating portfolio consisted of 62 operating assets comprising 46 commercial assets and 16 multifamily assets. The company has elected to be taxed as a REIT and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. JBG SMITH Properties was founded in 2016 and is headquartered in Chevy Chase, Maryland.
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