NexPoint Residential Trust (NYSE:NXRT) and Monmouth R.E. Inv. (NYSE:MNR) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, analyst recommendations, valuation and profitability.
This is a breakdown of recent recommendations for NexPoint Residential Trust and Monmouth R.E. Inv., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NexPoint Residential Trust||0||1||3||1||3.00|
|Monmouth R.E. Inv.||1||1||1||0||2.00|
NexPoint Residential Trust currently has a consensus target price of $45.20, indicating a potential upside of 1.28%. Monmouth R.E. Inv. has a consensus target price of $14.67, indicating a potential upside of 1.99%. Given Monmouth R.E. Inv.’s higher possible upside, analysts clearly believe Monmouth R.E. Inv. is more favorable than NexPoint Residential Trust.
Institutional & Insider Ownership
78.2% of NexPoint Residential Trust shares are held by institutional investors. Comparatively, 70.6% of Monmouth R.E. Inv. shares are held by institutional investors. 11.6% of NexPoint Residential Trust shares are held by company insiders. Comparatively, 3.9% of Monmouth R.E. Inv. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility & Risk
NexPoint Residential Trust has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Monmouth R.E. Inv. has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.
Valuation & Earnings
This table compares NexPoint Residential Trust and Monmouth R.E. Inv.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NexPoint Residential Trust||$181.07 million||5.99||$99.14 million||$2.20||20.29|
|Monmouth R.E. Inv.||$158.52 million||8.89||$29.80 million||$0.85||16.92|
NexPoint Residential Trust has higher revenue and earnings than Monmouth R.E. Inv.. Monmouth R.E. Inv. is trading at a lower price-to-earnings ratio than NexPoint Residential Trust, indicating that it is currently the more affordable of the two stocks.
NexPoint Residential Trust pays an annual dividend of $1.25 per share and has a dividend yield of 2.8%. Monmouth R.E. Inv. pays an annual dividend of $0.68 per share and has a dividend yield of 4.7%. NexPoint Residential Trust pays out 56.8% of its earnings in the form of a dividend. Monmouth R.E. Inv. pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NexPoint Residential Trust has increased its dividend for 4 consecutive years and Monmouth R.E. Inv. has increased its dividend for 1 consecutive years.
This table compares NexPoint Residential Trust and Monmouth R.E. Inv.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NexPoint Residential Trust||62.17%||31.19%||6.95%|
|Monmouth R.E. Inv.||1.56%||0.41%||0.14%|
NexPoint Residential Trust beats Monmouth R.E. Inv. on 15 of the 18 factors compared between the two stocks.
NexPoint Residential Trust Company Profile
NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol "NXRT," primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with "value-add" potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States. NXRT is externally advised by NexPoint Real Estate Advisors, L.P., an affiliate of Highland Capital Management, L.P., a leading global alternative asset manager and an SEC-registered investment adviser.
Monmouth R.E. Inv. Company Profile
Monmouth Real Estate Investment Corporation, founded in 1968, is one of the oldest public equity REITs in the world. We specialize in single tenant, net-leased industrial properties, subject to long-term leases, primarily to investment-grade tenants. Monmouth Real Estate is a fully integrated and self-managed real estate company, whose property portfolio consists of 113 properties containing a total of approximately 21.8 million rentable square feet, geographically diversified across 30 states. In addition, we own a portfolio of REIT securities.
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