NexPoint Residential Trust (NYSE:NXRT) and American Hotel Income Properties REIT (OTCMKTS:AHOTF) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.
NexPoint Residential Trust pays an annual dividend of $1.10 per share and has a dividend yield of 2.7%. American Hotel Income Properties REIT does not pay a dividend. NexPoint Residential Trust pays out 58.5% of its earnings in the form of a dividend.
65.7% of NexPoint Residential Trust shares are owned by institutional investors. 21.5% of NexPoint Residential Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of current ratings for NexPoint Residential Trust and American Hotel Income Properties REIT, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NexPoint Residential Trust||0||1||2||1||3.00|
|American Hotel Income Properties REIT||0||0||0||0||N/A|
NexPoint Residential Trust currently has a consensus target price of $38.00, suggesting a potential downside of 5.28%. Given NexPoint Residential Trust’s higher possible upside, equities analysts clearly believe NexPoint Residential Trust is more favorable than American Hotel Income Properties REIT.
This table compares NexPoint Residential Trust and American Hotel Income Properties REIT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NexPoint Residential Trust||-10.49%||-6.13%||-1.38%|
|American Hotel Income Properties REIT||N/A||N/A||N/A|
Earnings & Valuation
This table compares NexPoint Residential Trust and American Hotel Income Properties REIT’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NexPoint Residential Trust||$146.60 million||6.47||-$1.60 million||$1.88||21.34|
|American Hotel Income Properties REIT||N/A||N/A||N/A||N/A||N/A|
American Hotel Income Properties REIT has lower revenue, but higher earnings than NexPoint Residential Trust.
NexPoint Residential Trust beats American Hotel Income Properties REIT on 7 of the 11 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 Highland Capital Management, L.P., a leading global alternative asset manager and an SEC-registered investment adviser.
About American Hotel Income Properties REIT
American Hotel Income Properties REIT LP (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.U), or AHIP, is a limited partnership formed to invest in hotel real estate properties located substantially in the United States. AHIP currently has 112 hotels, and is engaged in growing its portfolio of premium branded, select-service hotels in larger secondary markets that have diverse and stable demand. AHIP hotels operate under brands affiliated with Marriott, Hilton, IHG, Wyndham and Choice Hotels through license agreements. The company's long-term objectives are to build on its proven track record of successful investment, deliver reliable and consistent U.S. dollar denominated distributions to unitholders, and generate value through the continued growth of its diversified hotel portfolio.
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