NexPoint Real Estate Finance (NASDAQ:PFHD) and CBTX (NASDAQ:CBTX) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Insider & Institutional Ownership

3.4% of NexPoint Real Estate Finance shares are owned by institutional investors. Comparatively, 30.4% of CBTX shares are owned by institutional investors. 29.2% of CBTX shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares NexPoint Real Estate Finance and CBTX’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NexPoint Real Estate Finance N/A N/A N/A N/A N/A
CBTX $172.02 million 2.48 $50.52 million $2.02 8.39

CBTX has higher revenue and earnings than NexPoint Real Estate Finance.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for NexPoint Real Estate Finance and CBTX, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NexPoint Real Estate Finance 0 1 2 0 2.67
CBTX 0 1 0 0 2.00

NexPoint Real Estate Finance presently has a consensus target price of $21.83, indicating a potential upside of 37.92%. CBTX has a consensus target price of $31.00, indicating a potential upside of 82.89%. Given CBTX’s higher possible upside, analysts clearly believe CBTX is more favorable than NexPoint Real Estate Finance.

Profitability

This table compares NexPoint Real Estate Finance and CBTX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NexPoint Real Estate Finance N/A N/A N/A
CBTX 29.37% 9.75% 1.49%

Summary

CBTX beats NexPoint Real Estate Finance on 7 of the 9 factors compared between the two stocks.

NexPoint Real Estate Finance Company Profile

Professional Holding Corp., a financial holding company, operates primarily through its subsidiary, Professional Bank, provides banking products and services to small and medium sized businesses, other professionals, entrepreneurs, and high net worth individuals. Its deposit products include checking, savings, and money market accounts, as well as IRAs and certificates of deposit. The company's lending products comprise commercial loans, residential mortgage loans, home equity lines of credit, installment loans, and consumer lines of credit. It also offers cash management services, online/digital and mobile banking services. The company has five branches and four loan production offices located throughout South Florida. The company was founded in 2008 and is headquartered in Coral Gables, Florida.

CBTX Company Profile

CBTX, Inc. operates as the bank holding company for CommunityBank of Texas, National Association that provides commercial banking solutions to small and mid-sized businesses, and professionals in the United States. The company offers various deposit products, including demand, savings, money market, and time accounts; and loans, such as commercial and industrial loans, commercial real estate loans, construction and development loans, 1-4 family residential mortgage loans, multi-family residential loans, consumer loans, and agricultural loans. It also provides treasury and online banking services. CBTX, Inc. operates 35 banking locations, including 19 branches in Houston; 15 branches in Beaumont; and 1 branch in Dallas. The company was formerly known as CBFH, Inc. and changed its name to CBTX, Inc. in September 2017. CBTX, Inc. was founded in 2007 and is based in Houston, Texas.

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