NexPoint Residential Trust (NYSE: NXRT) is one of 42 publicly-traded companies in the “Residential REITs” industry, but how does it weigh in compared to its competitors? We will compare NexPoint Residential Trust to similar businesses based on the strength of its dividends, analyst recommendations, risk, profitability, earnings, valuation and institutional ownership.
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 competitors have a beta of 0.50, meaning that their average stock price is 50% less volatile than the S&P 500.
Institutional & Insider Ownership
58.1% of NexPoint Residential Trust shares are held by institutional investors. Comparatively, 76.4% 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a summary of current recommendations for NexPoint Residential Trust and its competitors, as provided 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||1250||32||2.42|
NexPoint Residential Trust currently has a consensus price target of $27.67, indicating a potential downside of 2.31%. As a group, “Residential REITs” companies have a potential upside of 7.18%. Given NexPoint Residential Trust’s competitors higher probable upside, analysts plainly believe NexPoint Residential Trust has less favorable growth aspects than its competitors.
This table compares NexPoint Residential Trust and its competitors’ 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||20.47%||4.10%||1.59%|
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 146.0% of their earnings in the form of a dividend.
Earnings & Valuation
This table compares NexPoint Residential Trust and its competitors gross revenue, earnings per share 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||126.22|
NexPoint Residential Trust’s competitors have higher revenue and earnings than NexPoint Residential Trust. NexPoint Residential Trust is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
NexPoint Residential Trust beats its competitors 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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