Analyzing NexPoint Residential Trust (NYSE:NXRT) & Brixmor Property Group (NYSE:BRX)

NexPoint Residential Trust (NYSE:NXRT) and Brixmor Property Group (NYSE:BRX) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.

Volatility & Risk

NexPoint Residential Trust has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, Brixmor Property Group has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for NexPoint Residential Trust and Brixmor Property Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NexPoint Residential Trust	0	2	3	0	2.60
Brixmor Property Group	0	4	9	0	2.69

NexPoint Residential Trust currently has a consensus price target of $49.00, indicating a potential upside of 29.12%. Brixmor Property Group has a consensus price target of $30.19, indicating a potential upside of 15.28%. Given NexPoint Residential Trust’s higher probable upside, analysts plainly believe NexPoint Residential Trust is more favorable than Brixmor Property Group.

Valuation and Earnings

This table compares NexPoint Residential Trust and Brixmor Property Group”s gross 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	3.64	$44.26 million	$1.75	21.69
Brixmor Property Group	$1.27 billion	6.21	$305.09 million	$1.08	24.25

Brixmor Property Group has higher revenue and earnings than NexPoint Residential Trust. NexPoint Residential Trust is trading at a lower price-to-earnings ratio than Brixmor Property Group, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

76.6% of NexPoint Residential Trust shares are owned by institutional investors. Comparatively, 98.4% of Brixmor Property Group shares are owned by institutional investors. 13.0% of NexPoint Residential Trust shares are owned by insiders. Comparatively, 0.8% of Brixmor Property Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares NexPoint Residential Trust and Brixmor Property Group’s 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%
Brixmor Property Group	25.81%	11.48%	3.81%

Dividends

NexPoint Residential Trust pays an annual dividend of $2.04 per share and has a dividend yield of 5.4%. Brixmor Property Group pays an annual dividend of $1.15 per share and has a dividend yield of 4.4%. 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. Brixmor Property Group pays out 106.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Brixmor Property Group beats NexPoint Residential Trust on 12 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 Brixmor Property Group

Brixmor (NYSE: BRX) is a real estate investment trust (REIT) that owns and operates a high-quality, national portfolio of open-air shopping centers. Its 362 retail centers comprise approximately 64 million square feet of prime retail space in established trade areas. The Company strives to own and operate shopping centers that reflect Brixmor's vision to be the center of the communities we serve and are home to a diverse mix of thriving national, regional and local retailers. Brixmor is a proud real estate partner to over 5,000 retailers including The TJX Companies, The Kroger Co., Publix Super Markets and Ross Stores.