Head to Head Contrast: Macerich (MAC) & JBG SMITH Properties (JBGS)

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Macerich (NYSE:MAC) and JBG SMITH Properties (NYSE:JBGS) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Macerich 6.25% 2.41% 0.87%
JBG SMITH Properties 6.20% 1.33% 0.67%

Risk & Volatility

Macerich has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, JBG SMITH Properties has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Earnings and Valuation

This table compares Macerich and JBG SMITH Properties’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Macerich $960.35 million 6.27 $60.02 million $3.85 11.07
JBG SMITH Properties $644.18 million 7.91 $39.92 million N/A N/A

Macerich has higher revenue and earnings than JBG SMITH Properties.

Dividends

Macerich pays an annual dividend of $3.00 per share and has a dividend yield of 7.0%. JBG SMITH Properties pays an annual dividend of $0.90 per share and has a dividend yield of 2.2%. Macerich pays out 77.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Macerich has raised its dividend for 8 consecutive years. Macerich is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings for Macerich and JBG SMITH Properties, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Macerich 2 11 4 0 2.12
JBG SMITH Properties 0 1 0 0 2.00

Macerich currently has a consensus price target of $56.73, suggesting a potential upside of 33.08%. JBG SMITH Properties has a consensus price target of $37.00, suggesting a potential downside of 11.04%. Given Macerich’s stronger consensus rating and higher possible upside, equities analysts clearly believe Macerich is more favorable than JBG SMITH Properties.

Institutional and Insider Ownership

96.3% of Macerich shares are owned by institutional investors. Comparatively, 84.0% of JBG SMITH Properties shares are owned by institutional investors. 3.8% of Macerich 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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Macerich beats JBG SMITH Properties on 12 of the 16 factors compared between the two stocks.

About Macerich

Macerich, an S&P 500 company, is a fully integrated, self-managed and self-administered real estate investment trust, which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States. Macerich currently owns 51 million square feet of real estate consisting primarily of interests in 47 regional shopping centers. Macerich specializes in successful retail properties in many of the country's most attractive, densely populated markets with significant presence in the West Coast, Arizona, Chicago, and the New York Metro area to Washington, DC corridor. A recognized leader in sustainability, Macerich has earned Nareit's prestigious "Leader in the Light" award every year from 2014-2018. For the fourth straight year in 2018 Macerich achieved the #1 GRESB ranking in the North American Retail Sector, among many other environmental accomplishments.

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. The company's assets consist of office, multifamily, and retail properties. As of December 31, 2017, its operating portfolio consisted of 69 operating assets comprising 51 office assets, 14 multifamily assets, and 4 other assets. JBG SMITH Properties also provides real estate services. The company qualifies as a REIT for federal income tax purposes. It generally 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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