Contrasting JBG SMITH Properties (NYSE:JBGS) and Generation Income Properties (NASDAQ:GIPR)

Generation Income Properties (NASDAQ:GIPR) and JBG SMITH Properties (NYSE:JBGS) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.

Insider and Institutional Ownership

20.7% of Generation Income Properties shares are owned by institutional investors. Comparatively, 98.5% of JBG SMITH Properties shares are owned by institutional investors. 5.6% of Generation Income Properties shares are owned by insiders. Comparatively, 4.4% of JBG SMITH Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Generation Income Properties has a beta of -0.06, meaning that its share price is 106% less volatile than the S&P 500. Comparatively, JBG SMITH Properties has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Dividends

Generation Income Properties pays an annual dividend of $0.46 per share and has a dividend yield of 28.7%. JBG SMITH Properties pays an annual dividend of $0.70 per share and has a dividend yield of 4.4%. Generation Income Properties pays out -27.4% of its earnings in the form of a dividend. JBG SMITH Properties pays out -37.4% 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.

Earnings and Valuation

This table compares Generation Income Properties and JBG SMITH Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Generation Income Properties	$9.76 million	0.89	-$5.72 million	($1.68)	-0.95
JBG SMITH Properties	$522.81 million	2.25	-$79.98 million	($1.87)	-8.60

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

Profitability

This table compares Generation Income Properties and JBG SMITH Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Generation Income Properties	-97.27%	-122.61%	-9.33%
JBG SMITH Properties	-26.22%	-7.26%	-2.74%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Generation Income Properties and JBG SMITH Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Generation Income Properties	0	1	0	0	2.00
JBG SMITH Properties	2	0	0	0	1.00

JBG SMITH Properties has a consensus target price of $16.00, indicating a potential downside of 0.56%. Given JBG SMITH Properties’ higher probable upside, analysts plainly believe JBG SMITH Properties is more favorable than Generation Income Properties.

Summary

JBG SMITH Properties beats Generation Income Properties on 9 of the 15 factors compared between the two stocks.

About Generation Income Properties

Generation Income Properties, Inc., located in Tampa, Florida, is an internally managed real estate investment trust formed to acquire and own, directly and jointly, real estate investments focused on retail, office, and industrial net lease properties in densely populated submarkets.

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.