Contrasting JBG SMITH Properties (NYSE:JBGS) and Getty Realty (NYSE:GTY)

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Getty Realty and JBG SMITH Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Getty Realty	0	4	2	0	2.33
JBG SMITH Properties	2	0	0	0	1.00

Getty Realty presently has a consensus price target of $31.60, indicating a potential downside of 0.62%. JBG SMITH Properties has a consensus price target of $18.50, indicating a potential upside of 17.99%. Given JBG SMITH Properties’ higher possible upside, analysts clearly believe JBG SMITH Properties is more favorable than Getty Realty.

Dividends

Getty Realty pays an annual dividend of $1.94 per share and has a dividend yield of 6.1%. JBG SMITH Properties pays an annual dividend of $0.70 per share and has a dividend yield of 4.5%. Getty Realty pays out 144.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. JBG SMITH Properties pays out -33.2% of its earnings in the form of a dividend. Getty Realty has increased its dividend for 1 consecutive years. Getty Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Getty Realty has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, JBG SMITH Properties has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Getty Realty	35.72%	7.86%	3.86%
JBG SMITH Properties	-27.89%	-10.61%	-3.08%

Insider and Institutional Ownership

85.1% of Getty Realty shares are held by institutional investors. Comparatively, 98.5% of JBG SMITH Properties shares are held by institutional investors. 8.8% of Getty Realty shares are held by insiders. Comparatively, 4.4% of JBG SMITH Properties shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Getty Realty and JBG SMITH Properties”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Getty Realty	$221.73 million	8.58	$79.19 million	$1.34	23.73
JBG SMITH Properties	$498.60 million	1.85	-$143.53 million	($2.11)	-7.43

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

Summary

Getty Realty beats JBG SMITH Properties on 12 of the 17 factors compared between the two stocks.

About Getty Realty

Getty Realty Corp. is a publicly traded, net lease REIT specializing in the acquisition, financing and development of convenience, automotive and other single tenant retail real estate. As of December 31, 2023, the Company’s portfolio included 1,093 freestanding properties located in 40 states across the United States and Washington, D.C.

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.