Head to Head Contrast: NexPoint Residential Trust (NXRT) and Its Peers

NexPoint Residential Trust (NYSE:NXRT) is one of 57 public companies in the “Residential REITs” industry, but how does it compare to its rivals? We will compare NexPoint Residential Trust to similar companies based on the strength of its institutional ownership, earnings, analyst recommendations, dividends, risk, profitability and valuation.

Analyst Ratings

This is a summary of current recommendations and price targets for NexPoint Residential Trust and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NexPoint Residential Trust	3	3	0	0	1.50
NexPoint Residential Trust Competitors	619	3260	3375	147	2.41

NexPoint Residential Trust presently has a consensus target price of $20.50, indicating a potential upside of 16.86%. As a group, “Residential REITs” companies have a potential upside of 10.84%. Given NexPoint Residential Trust’s higher probable upside, equities research analysts plainly believe NexPoint Residential Trust is more favorable than its rivals.

Profitability

This table compares NexPoint Residential Trust and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NexPoint Residential Trust	-13.22%	-11.75%	-1.79%
NexPoint Residential Trust Competitors	9.87%	2.47%	2.34%

Dividends

NexPoint Residential Trust pays an annual dividend of $2.12 per share and has a dividend yield of 12.1%. NexPoint Residential Trust pays out -159.4% of its earnings in the form of a dividend. As a group, “Residential REITs” companies pay a dividend yield of 4.6% and pay out 248.1% of their earnings in the form of a dividend. NexPoint Residential Trust has increased its dividend for 3 consecutive years. NexPoint Residential Trust is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Risk & Volatility

NexPoint Residential Trust has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, NexPoint Residential Trust’s rivals have a beta of 0.68, indicating that their average share price is 32% less volatile than the S&P 500.

Valuation and Earnings

This table compares NexPoint Residential Trust and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NexPoint Residential Trust	$251.28 million	-$32.03 million	-13.19
NexPoint Residential Trust Competitors	$774.66 million	$238.42 million	37.99

NexPoint Residential Trust’s rivals have higher revenue and earnings than NexPoint Residential Trust. NexPoint Residential Trust is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

76.6% of NexPoint Residential Trust shares are held by institutional investors. Comparatively, 55.7% of shares of all “Residential REITs” companies are held by institutional investors. 16.6% of NexPoint Residential Trust shares are held by company insiders. Comparatively, 8.5% of shares of all “Residential REITs” companies are held by company 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.

Summary

NexPoint Residential Trust rivals beat NexPoint Residential Trust on 9 of the 15 factors compared.

NexPoint Residential Trust Company Profile

NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol “NXRT,” primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with “value-add” potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States. NXRT is externally advised by NexPoint Real Estate Advisors, L.P., an affiliate of NexPoint Advisors, L.P., an SEC-registered investment advisor, which has extensive real estate experience.