NexPoint Residential Trust (NYSE: NXRT) is one of 42 publicly-traded companies in the “Residential REITs” industry, but how does it contrast to its rivals? We will compare NexPoint Residential Trust to related businesses based on the strength of its earnings, profitability, valuation, risk, analyst recommendations, institutional ownership and dividends.
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||40.80%||24.54%||5.43%|
|NexPoint Residential Trust Competitors||22.71%||4.04%||1.57%|
Valuation and Earnings
This table compares NexPoint Residential Trust and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|NexPoint Residential Trust||$132.85 million||$21.88 million||10.53|
|NexPoint Residential Trust Competitors||$673.41 million||$325.74 million||89.79|
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.
NexPoint Residential Trust pays an annual dividend of $0.88 per share and has a dividend yield of 3.1%. NexPoint Residential Trust pays out 32.7% of its earnings in the form of a dividend. As a group, “Residential REITs” companies pay a dividend yield of 3.5% and pay out 144.6% of their earnings in the form of a dividend.
This is a breakdown of current ratings for NexPoint Residential Trust and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NexPoint Residential Trust||0||1||4||0||2.80|
|NexPoint Residential Trust Competitors||186||1218||1249||32||2.42|
NexPoint Residential Trust presently has a consensus target price of $27.67, suggesting a potential downside of 2.31%. As a group, “Residential REITs” companies have a potential upside of 23.79%. Given NexPoint Residential Trust’s rivals higher possible upside, analysts clearly believe NexPoint Residential Trust has less favorable growth aspects than its rivals.
Risk & Volatility
NexPoint Residential Trust has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, NexPoint Residential Trust’s rivals have a beta of 1.52, meaning that their average stock price is 52% more volatile than the S&P 500.
Insider and Institutional Ownership
58.6% of NexPoint Residential Trust shares are held by institutional investors. Comparatively, 76.3% of shares of all “Residential REITs” companies are held by institutional investors. 16.6% of NexPoint Residential Trust shares are held by insiders. Comparatively, 7.2% of shares of all “Residential REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
NexPoint Residential Trust rivals beat NexPoint Residential Trust on 8 of the 15 factors compared.
About NexPoint Residential Trust
NexPoint Residential Trust, Inc. is an externally managed real estate investment trust (REIT). The Company’s investment objectives are to maximize the cash flow and value of properties owned, acquire properties with cash flow growth potential, provide quarterly cash distributions and achieve long-term capital appreciation for its stockholders through targeted management and a value-add program. The Company is focused on multifamily investments primarily located in the Southeastern and Southwestern United States. All of the Company’s business operations are conducted through NexPoint Residential Trust Operating Partnership, L.P. (OP). The sole limited partner of the OP is the Company. Its subsidiary, NexPoint Residential Trust Operating Partnership GP, LLC, is the sole general partner of the OP. As of December 31, 2016, the Company owned 39 properties representing 12,965 units in eight states, including two Parked Assets. The Company’s advisor is NexPoint Real Estate Advisors, L.P.
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