Head-To-Head Comparison: JBG SMITH Properties (NYSE:JBGS) versus CubeSmart (NYSE:CUBE)

JBG SMITH Properties (NYSE:JBGS) and CubeSmart (NYSE:CUBE) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Insider and Institutional Ownership

98.5% of JBG SMITH Properties shares are held by institutional investors. Comparatively, 97.6% of CubeSmart shares are held by institutional investors. 3.7% of JBG SMITH Properties shares are held by insiders. Comparatively, 1.7% of CubeSmart shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for JBG SMITH Properties and CubeSmart, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JBG SMITH Properties	2	0	0	0	1.00
CubeSmart	0	7	4	0	2.36

JBG SMITH Properties presently has a consensus price target of $16.00, suggesting a potential upside of 7.10%. CubeSmart has a consensus price target of $49.73, suggesting a potential upside of 19.28%. Given CubeSmart’s stronger consensus rating and higher possible upside, analysts clearly believe CubeSmart is more favorable than JBG SMITH Properties.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JBG SMITH Properties	-20.60%	-5.56%	-2.17%
CubeSmart	37.79%	14.33%	6.48%

Valuation and Earnings

This table compares JBG SMITH Properties and CubeSmart”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JBG SMITH Properties	$604.20 million	2.09	-$79.98 million	($1.30)	-11.49
CubeSmart	$1.05 billion	8.98	$410.76 million	$1.77	23.55

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

Risk & Volatility

JBG SMITH Properties has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, CubeSmart has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Dividends

JBG SMITH Properties pays an annual dividend of $0.70 per share and has a dividend yield of 4.7%. CubeSmart pays an annual dividend of $2.08 per share and has a dividend yield of 5.0%. JBG SMITH Properties pays out -53.8% of its earnings in the form of a dividend. CubeSmart pays out 117.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CubeSmart has raised its dividend for 15 consecutive years. CubeSmart is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

CubeSmart beats JBG SMITH Properties on 13 of the 17 factors compared between the two stocks.

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.

About CubeSmart

CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and, in most locations, climate-controlled storage space for residential and commercial customers. According to the 2023 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.