NexPoint Residential Trust (NYSE: NXRT) is one of 45 public companies in the “Residential REITs” industry, but how does it contrast to its rivals? We will compare NexPoint Residential Trust to similar companies based on the strength of its valuation, risk, institutional ownership, dividends, profitability, earnings and analyst recommendations.
This is a breakdown of recent recommendations for NexPoint Residential Trust and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NexPoint Residential Trust||0||1||3||0||2.75|
|NexPoint Residential Trust Competitors||181||1214||1249||30||2.42|
NexPoint Residential Trust presently has a consensus price target of $27.50, suggesting a potential upside of 15.79%. As a group, “Residential REITs” companies have a potential upside of 7.78%. Given NexPoint Residential Trust’s stronger consensus rating and higher possible upside, analysts clearly believe NexPoint Residential Trust is more favorable than its rivals.
Earnings & Valuation
This table compares NexPoint Residential Trust and its rivals revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|NexPoint Residential Trust||$137.90 million||$57.99 million||46.57|
|NexPoint Residential Trust Competitors||$653.39 million||$367.19 million||2.70|
NexPoint Residential Trust’s rivals have higher revenue and earnings than NexPoint Residential Trust. NexPoint Residential Trust is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Volatility and Risk
NexPoint Residential Trust has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, NexPoint Residential Trust’s rivals have a beta of 0.57, suggesting that their average share price is 43% less volatile than the S&P 500.
NexPoint Residential Trust pays an annual dividend of $0.88 per share and has a dividend yield of 3.7%. NexPoint Residential Trust pays out 172.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Residential REITs” companies pay a dividend yield of 3.4% and pay out 139.7% of their earnings in the form of a dividend.
Institutional and Insider Ownership
57.5% of NexPoint Residential Trust shares are held by institutional investors. Comparatively, 77.0% 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, 7.1% 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 stock will outperform the market over the long term.
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||9.27%||5.39%||1.26%|
|NexPoint Residential Trust Competitors||27.05%||5.82%||2.40%|
NexPoint Residential Trust rivals beat NexPoint Residential Trust on 8 of the 15 factors compared.
NexPoint Residential Trust Company Profile
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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