Analyzing NexPoint Real Estate Finance (NYSE:NREF) & Safestore (OTCMKTS:SFSHF)

NexPoint Real Estate Finance (NYSE:NREFGet Rating) and Safestore (OTCMKTS:SFSHFGet Rating) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent recommendations for NexPoint Real Estate Finance and Safestore, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NexPoint Real Estate Finance 0 0 1 1 3.50
Safestore 0 2 1 0 2.33

NexPoint Real Estate Finance currently has a consensus price target of $24.00, indicating a potential downside of 0.04%. Given NexPoint Real Estate Finance’s stronger consensus rating and higher probable upside, analysts clearly believe NexPoint Real Estate Finance is more favorable than Safestore.

Insider & Institutional Ownership

74.3% of NexPoint Real Estate Finance shares are held by institutional investors. 48.0% of NexPoint Real Estate Finance shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares NexPoint Real Estate Finance and Safestore’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NexPoint Real Estate Finance 61.05% 15.94% 0.47%
Safestore N/A N/A N/A

Risk and Volatility

NexPoint Real Estate Finance has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, Safestore has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Earnings & Valuation

This table compares NexPoint Real Estate Finance and Safestore’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NexPoint Real Estate Finance $55.83 million 6.27 $43.08 million $3.48 6.90
Safestore N/A N/A N/A N/A N/A

NexPoint Real Estate Finance has higher revenue and earnings than Safestore.

Summary

NexPoint Real Estate Finance beats Safestore on 10 of the 10 factors compared between the two stocks.

About NexPoint Real Estate Finance (Get Rating)

NexPoint Real Estate Finance, Inc. operates as a real estate finance company in the United States. It focuses on originating, structuring, and investing in first mortgage loans, mezzanine loans, preferred equity, and preferred stock, as well as multifamily commercial mortgage backed securities securitizations. The company intends to qualify as a real estate investment trust for U.S. federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was incorporated in 2019 and is based in Dallas, Texas.

About Safestore (Get Rating)

Safestore is the UK's largest self-storage group with 163 stores, comprising 125 wholly owned stores in the UK (including over 70 in London and the South East with the remainder in key metropolitan areas such as Manchester, Birmingham, Glasgow, Edinburgh, Liverpool and Bristol), 28 wholly owned stores in the Paris region, 6 stores in the Netherlands and 4 stores within Barcelona, Spain. Safestore was founded in the UK in 1998. It acquired the French business Une Pi├Ęce en Plus in 2004 which was founded in 1998 by the current Safestore Group CEO Frederic Vecchioli.

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