Mid-America Apartment Communities (NYSE:MAA) and JBG SMITH Properties (NYSE:JBGS) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.
Valuation and Earnings
This table compares Mid-America Apartment Communities and JBG SMITH Properties' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Mid-America Apartment Communities | $1.64 billion | 9.61 | $353.81 million | $6.55 | 21.05 |
| JBG SMITH Properties | $647.77 million | 6.60 | $65.57 million | $1.61 | 20.04 |
Mid-America Apartment Communities has higher revenue and earnings than JBG SMITH Properties. JBG SMITH Properties is trading at a lower price-to-earnings ratio than Mid-America Apartment Communities, indicating that it is currently the more affordable of the two stocks.
Dividends
Mid-America Apartment Communities pays an annual dividend of $4.10 per share and has a dividend yield of 3.0%. JBG SMITH Properties pays an annual dividend of $0.90 per share and has a dividend yield of 2.8%. Mid-America Apartment Communities pays out 62.6% of its earnings in the form of a dividend. JBG SMITH Properties pays out 55.9% 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. Mid-America Apartment Communities has raised its dividend for 1 consecutive years and JBG SMITH Properties has raised its dividend for 1 consecutive years.
Profitability
This table compares Mid-America Apartment Communities and JBG SMITH Properties' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Mid-America Apartment Communities | 19.22% | 5.63% | 3.13% |
| JBG SMITH Properties | 2.87% | 0.52% | 0.29% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Mid-America Apartment Communities and JBG SMITH Properties, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Mid-America Apartment Communities | 0 | 4 | 4 | 0 | 2.50 |
| JBG SMITH Properties | 0 | 1 | 0 | 0 | 2.00 |
Mid-America Apartment Communities currently has a consensus price target of $129.7273, suggesting a potential downside of 5.93%. JBG SMITH Properties has a consensus price target of $32.00, suggesting a potential downside of 0.81%. Given JBG SMITH Properties' higher probable upside, analysts clearly believe JBG SMITH Properties is more favorable than Mid-America Apartment Communities.
Insider and Institutional Ownership
91.4% of Mid-America Apartment Communities shares are owned by institutional investors. Comparatively, 80.6% of JBG SMITH Properties shares are owned by institutional investors. 1.3% of Mid-America Apartment Communities shares are owned by insiders. Comparatively, 8.3% of JBG SMITH Properties shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Mid-America Apartment Communities has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, JBG SMITH Properties has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.
Summary
Mid-America Apartment Communities beats JBG SMITH Properties on 11 of the 16 factors compared between the two stocks.
