NexPoint Residential Trust (NYSE:NXRT – Get Free Report) and Summit Industrial Income REIT (OTCMKTS:SMMCF – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
78.3% of NexPoint Residential Trust shares are held by institutional investors. Comparatively, 0.1% of Summit Industrial Income REIT shares are held by institutional investors. 13.0% of NexPoint Residential Trust shares are held by company 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.
This table compares NexPoint Residential Trust and Summit Industrial Income REIT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NexPoint Residential Trust||10.68%||5.91%||1.35%|
|Summit Industrial Income REIT||N/A||N/A||N/A|
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NexPoint Residential Trust||0||2||1||0||2.33|
|Summit Industrial Income REIT||0||0||0||0||N/A|
NexPoint Residential Trust presently has a consensus target price of $50.33, suggesting a potential upside of 62.31%. Summit Industrial Income REIT has a consensus target price of $15.50, suggesting a potential downside of 10.22%. Given NexPoint Residential Trust’s higher possible upside, research analysts plainly believe NexPoint Residential Trust is more favorable than Summit Industrial Income REIT.
Valuation & Earnings
This table compares NexPoint Residential Trust and Summit Industrial Income REIT’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NexPoint Residential Trust||$263.95 million||3.02||-$9.26 million||$1.13||27.44|
|Summit Industrial Income REIT||N/A||N/A||N/A||$0.59||29.50|
Summit Industrial Income REIT has lower revenue, but higher earnings than NexPoint Residential Trust. NexPoint Residential Trust is trading at a lower price-to-earnings ratio than Summit Industrial Income REIT, indicating that it is currently the more affordable of the two stocks.
NexPoint Residential Trust pays an annual dividend of $1.68 per share and has a dividend yield of 5.4%. Summit Industrial Income REIT pays an annual dividend of $0.21 per share and has a dividend yield of 1.2%. NexPoint Residential Trust pays out 148.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Summit Industrial Income REIT pays out 35.9% of its earnings in the form of a dividend. NexPoint Residential Trust has increased its dividend for 8 consecutive years. NexPoint Residential Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
NexPoint Residential Trust beats Summit Industrial Income REIT on 11 of the 13 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 Summit Industrial Income REIT
Summit Industrial Income REIT is an open-ended mutual fund trust, which engages in growing and managing a portfolio of light industrial properties. Its properties are located in Ontario, Quebec, Alberta, British Columbia, and New Brunswick. The company was founded on November 24, 1998 and is headquartered in Markham, Canada.
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