NexPoint Residential Trust (NYSE:NXRT – Get Free Report) and BRT Apartments (NYSE:BRT – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.
Institutional & Insider Ownership
76.6% of NexPoint Residential Trust shares are owned by institutional investors. Comparatively, 29.1% of BRT Apartments shares are owned by institutional investors. 13.0% of NexPoint Residential Trust shares are owned by insiders. Comparatively, 40.2% of BRT Apartments shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and target prices for NexPoint Residential Trust and BRT Apartments, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NexPoint Residential Trust | 0 | 2 | 3 | 0 | 2.60 |
| BRT Apartments | 0 | 0 | 2 | 0 | 3.00 |
Risk and Volatility
NexPoint Residential Trust has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, BRT Apartments has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500.
Valuation & Earnings
This table compares NexPoint Residential Trust and BRT Apartments”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 | $264.80 million | 4.06 | $44.26 million | $1.75 | 24.19 |
| BRT Apartments | $95.17 million | 3.48 | $3.87 million | ($0.53) | -33.26 |
NexPoint Residential Trust has higher revenue and earnings than BRT Apartments. BRT Apartments 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.
Profitability
This table compares NexPoint Residential Trust and BRT Apartments’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NexPoint Residential Trust | 17.54% | 9.54% | 2.29% |
| BRT Apartments | -9.94% | -4.33% | -1.34% |
Dividends
NexPoint Residential Trust pays an annual dividend of $2.04 per share and has a dividend yield of 4.8%. BRT Apartments pays an annual dividend of $1.00 per share and has a dividend yield of 5.7%. NexPoint Residential Trust pays out 116.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BRT Apartments pays out -188.7% of its earnings in the form of a dividend. BRT Apartments is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
NexPoint Residential Trust beats BRT Apartments on 11 of the 16 factors compared between the two stocks.
About NexPoint Residential Trust
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 NexPoint Advisors, L.P., an SEC-registered investment advisor, which has extensive real estate experience.
About BRT Apartments
BRT is a real estate investment trust that owns, operates and, to a lesser extent, holds interests in joint ventures that own multi-family properties. As of December 31, 2023, BRT owns or has interests in 28 multi-family properties with 7,707 units in 11 states.
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