NexPoint Residential Trust (NYSE:NXRT) versus Irish Residential Properties REIT (OTCMKTS:RSHPF) Critical Analysis

Irish Residential Properties REIT (OTCMKTS:RSHPF) and NexPoint Residential Trust (NYSE:NXRT) are both real estate companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Irish Residential Properties REIT and NexPoint Residential Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Irish Residential Properties REIT	0	0	0	0	0.00
NexPoint Residential Trust	2	2	0	1	2.00

NexPoint Residential Trust has a consensus target price of $22.00, indicating a potential downside of 11.18%. Given NexPoint Residential Trust’s stronger consensus rating and higher probable upside, analysts plainly believe NexPoint Residential Trust is more favorable than Irish Residential Properties REIT.

Profitability

This table compares Irish Residential Properties REIT and NexPoint Residential Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Irish Residential Properties REIT	N/A	N/A	N/A
NexPoint Residential Trust	-12.67%	-10.30%	-1.71%

Earnings and Valuation

This table compares Irish Residential Properties REIT and NexPoint Residential Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Irish Residential Properties REIT	N/A	N/A	N/A	N/A	N/A
NexPoint Residential Trust	$251.61 million	2.51	-$32.03 million	($1.27)	-19.50

Irish Residential Properties REIT has higher earnings, but lower revenue than NexPoint Residential Trust.

Insider & Institutional Ownership

76.6% of NexPoint Residential Trust shares are held by institutional investors. 16.6% of NexPoint Residential Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

NexPoint Residential Trust beats Irish Residential Properties REIT on 6 of the 9 factors compared between the two stocks.

About Irish Residential Properties REIT

Irish Residential Properties REIT plc (together with IRES Residential Properties Limited & IRES Fund Management Limited, the “Group”) is a growth oriented Real Estate Investment Trust that is focused on acquiring, holding, managing and developing investments primarily focused on private residential rental accommodations in Ireland. The Group currently owns 3,915 apartments and houses for private rental in Dublin and Cork with an additional 91 units due for delivery before the end of H1 2022 under pre-purchase contracts and a further 44 units in 2023. The Company has a further 61 units currently under construction directly on owned sites due in H1 2022 and has planning approval to develop an additional 543 residential units on its existing sites. The Company’s shares are listed on Euronext Dublin.

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.