NexPoint Residential Trust (NASDAQ: NXRT) and Independence Realty Trust (NYSE:IRT) are both small-cap financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitabiliy, dividends and valuation.

Valuation and Earnings

This table compares NexPoint Residential Trust and Independence Realty Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NexPoint Residential Trust $137.90 million 3.61 $57.99 million N/A N/A
Independence Realty Trust $155.10 million 4.53 $30.95 million ($0.23) -44.17

NexPoint Residential Trust has higher revenue, but lower earnings than Independence Realty Trust.

Analyst Recommendations

This is a summary of recent recommendations for NexPoint Residential Trust and Independence Realty Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NexPoint Residential Trust 0 0 4 0 3.00
Independence Realty Trust 0 0 5 0 3.00

NexPoint Residential Trust presently has a consensus target price of $25.00, indicating a potential upside of 5.75%. Independence Realty Trust has a consensus target price of $10.31, indicating a potential upside of 1.50%. Given NexPoint Residential Trust’s higher probable upside, analysts clearly believe NexPoint Residential Trust is more favorable than Independence Realty Trust.

Dividends

Independence Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 7.1%. NexPoint Residential Trust does not pay a dividend. Independence Realty Trust pays out -313.0% of its earnings in the form of a dividend.

Profitability

This table compares NexPoint Residential Trust and Independence Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NexPoint Residential Trust 28.18% 14.15% 3.70%
Independence Realty Trust -10.28% -3.22% -1.22%

Institutional & Insider Ownership

71.9% of Independence Realty Trust shares are owned by institutional investors. 0.6% of Independence Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Independence Realty Trust beats NexPoint Residential Trust on 7 of the 13 factors compared between the two stocks.

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.

Independence Realty Trust Company Profile

Independence Realty Trust, Inc. is an internally-managed real estate investment trust (REIT). The Company is engaged in the business of owning, managing, operating, leasing, acquiring, developing, investing in, and disposing of real estate assets. The Company owns apartment properties in geographic non-gateway markets. As of July 5, 2017, the Company owns and operates 47 multifamily apartment properties, totaling 13,198 units. Its properties include Copper Mill, Crestmont, Heritage Trace, Runaway Bay, Berkshire Square, The Crossings, Reserve at Eagle Ridge, Windrush, Heritage Park, Raindance, Augusta, Invitational, Carrington Park, Walnut Hill, Lenoxplace, Bennington Pond, Jamestown, Meadows, Oxmoor, Bayview Club, Arbors River Oaks, Fox Trails, Bridge Pointe, The Aventine Greenville and Westmont Commons.

Receive News & Ratings for NexPoint Residential Trust Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NexPoint Residential Trust Inc and related companies with MarketBeat.com's FREE daily email newsletter.