NexPoint Diversified Real Estate Trust (NYSE:NXDT) vs. American Assets Trust (NYSE:AAT) Head to Head Review

NexPoint Diversified Real Estate Trust (NYSE:NXDT) and American Assets Trust (NYSE:AAT) are both real estate companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Dividends

NexPoint Diversified Real Estate Trust pays an annual dividend of $0.48 per share and has a dividend yield of 8.7%. American Assets Trust pays an annual dividend of $1.36 per share and has a dividend yield of 6.0%. American Assets Trust pays out 469.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Assets Trust has increased its dividend for 4 consecutive years.

Profitability

This table compares NexPoint Diversified Real Estate Trust and American Assets Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NexPoint Diversified Real Estate Trust	N/A	N/A	N/A
American Assets Trust	4.09%	1.66%	0.62%

Institutional and Insider Ownership

90.4% of American Assets Trust shares are held by institutional investors. 37.9% of American Assets Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for NexPoint Diversified Real Estate Trust and American Assets Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NexPoint Diversified Real Estate Trust	0	0	0	0	0.00
American Assets Trust	1	1	0	0	1.50

American Assets Trust has a consensus target price of $21.50, indicating a potential downside of 4.61%. Given American Assets Trust’s stronger consensus rating and higher probable upside, analysts plainly believe American Assets Trust is more favorable than NexPoint Diversified Real Estate Trust.

Earnings and Valuation

This table compares NexPoint Diversified Real Estate Trust and American Assets Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NexPoint Diversified Real Estate Trust	-$1.43 million	N/A	N/A	N/A	N/A
American Assets Trust	$436.20 million	3.17	$71.37 million	$0.29	77.72

American Assets Trust has higher revenue and earnings than NexPoint Diversified Real Estate Trust.

Summary

American Assets Trust beats NexPoint Diversified Real Estate Trust on 9 of the 11 factors compared between the two stocks.

About NexPoint Diversified Real Estate Trust

NexPoint Diversified Real Estate Trust (NXDT) is an externally advised diversified real estate investment trust (REIT), with its shares of common stock and 5.50% Series A Cumulative Preferred Shares listed on the New York Stock Exchange under the symbols NXDT and NXDT-PA, respectively. As a diversified REIT, NXDT's primary investment objective is to provide both current income and capital appreciation. NXDT seeks to achieve this objective by investing among various commercial real estate property types and across the capital structure, including but not limited to mortgage debt, mezzanine debt and common and preferred equity. Target underlying property types primarily include but are not limited to industrial, hospitality, net lease, retail, office, storage and healthcare and, to the extent currently owned, multifamily and single-family rentals. NXDT also may, to a limited extent, hold, acquire or transact in certain non-real estate securities.

About American Assets Trust

American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust ("REIT"), headquartered in San Diego, California. The company has over 55 years of experience in acquiring, improving, developing and managing premier office, retail, and residential properties throughout the United States in some of the nation's most dynamic, high-barrier-to-entry markets primarily in Southern California, Northern California, Washington, Oregon, Texas and Hawaii. The company's office portfolio comprises approximately 4.1 million rentable square feet, and its retail portfolio comprises approximately 3.1 million rentable square feet. In addition, the company owns one mixed-use property (including approximately 94,000 rentable square feet of retail space and a 369-room all-suite hotel) and 2,110 multifamily units. In 2011, the company was formed to succeed to the real estate business of American Assets, Inc., a privately held corporation founded in 1967 and, as such, has significant experience, long-standing relationships and extensive knowledge of its core markets, submarkets and asset classes.