NexPoint Residential Trust (NYSE:NXRT – Get Rating) and American Assets Trust (NYSE:AAT – Get Rating) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
Profitability
This table compares NexPoint Residential Trust and American Assets Trust's net margins, return on equity and return on assets.
Get NexPoint Residential Trust alerts:| Net Margins | Return on Equity | Return on Assets | |
| NexPoint Residential Trust | 8.68% | 4.42% | 0.99% |
| American Assets Trust | 9.68% | 3.25% | 1.30% |
Risk & Volatility
NexPoint Residential Trust has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, American Assets Trust has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for NexPoint Residential Trust and American Assets Trust, as provided by MarketBeat.com.| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NexPoint Residential Trust | 0 | 3 | 5 | 0 | 2.63 |
| American Assets Trust | 0 | 3 | 0 | 0 | 2.00 |
NexPoint Residential Trust presently has a consensus target price of $79.29, suggesting a potential upside of 62.90%. American Assets Trust has a consensus target price of $32.50, suggesting a potential upside of 27.65%. Given NexPoint Residential Trust's stronger consensus rating and higher probable upside, research analysts clearly believe NexPoint Residential Trust is more favorable than American Assets Trust.
Dividends
NexPoint Residential Trust pays an annual dividend of $1.52 per share and has a dividend yield of 3.1%. American Assets Trust pays an annual dividend of $1.28 per share and has a dividend yield of 5.0%. NexPoint Residential Trust pays out 187.7% 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 pays out 191.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NexPoint Residential Trust has increased its dividend for 6 consecutive years and American Assets Trust has increased its dividend for 2 consecutive years.
Valuation & Earnings
This table compares NexPoint Residential Trust and American Assets Trust'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 | $219.24 million | 5.69 | $23.04 million | $0.81 | 60.09 |
| American Assets Trust | $375.83 million | 4.10 | $36.59 million | $0.67 | 38.00 |
American Assets Trust has higher revenue and earnings than NexPoint Residential Trust. American Assets Trust 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.
Insider and Institutional Ownership
91.2% of NexPoint Residential Trust shares are owned by institutional investors. Comparatively, 95.0% of American Assets Trust shares are owned by institutional investors. 12.7% of NexPoint Residential Trust shares are owned by insiders. Comparatively, 34.4% of American Assets Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
NexPoint Residential Trust beats American Assets Trust on 9 of the 17 factors compared between the two stocks.
About NexPoint Residential Trust
(Get Rating)
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 American Assets Trust
(Get Rating)
American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust, or REIT, headquartered in San Diego, California. The company has over 50 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, Oregon, Washington, Texas and Hawaii. The company's office portfolio comprises approximately 3.4 million rentable square feet, and its retail portfolio comprises approximately 3.1 million square feet. In addition, the company owns one mixed-use property (including approximately 97,000 rentable square feet of retail space and a 369-room all-suite hotel) and 2,112 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.
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