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

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

Volatility & Risk

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

Dividends

Brixmor Property Group pays an annual dividend of $1.15 per share and has a dividend yield of 4.4%. NexPoint Residential Trust pays an annual dividend of $2.04 per share and has a dividend yield of 5.2%. 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. 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Brixmor Property Group and NexPoint Residential Trust, as provided by MarketBeat.

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

Brixmor Property Group presently has a consensus price target of $30.19, suggesting a potential upside of 14.83%. NexPoint Residential Trust has a consensus price target of $49.00, suggesting a potential upside of 25.03%. 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 Brixmor Property Group and NexPoint Residential Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brixmor Property Group	$1.25 billion	6.38	$305.09 million	$1.08	24.35
NexPoint Residential Trust	$277.53 million	3.59	$44.26 million	$1.75	22.39

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.

Profitability

This table compares Brixmor Property Group and NexPoint Residential Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brixmor Property Group	25.81%	11.48%	3.81%
NexPoint Residential Trust	17.54%	9.54%	2.29%

Insider & Institutional Ownership

98.4% of Brixmor Property Group shares are held by institutional investors. Comparatively, 76.6% of NexPoint Residential Trust shares are held by institutional investors. 0.8% of Brixmor Property Group shares are held by company insiders. Comparatively, 13.0% of NexPoint Residential Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Brixmor Property Group beats NexPoint Residential Trust on 12 of the 16 factors compared between the two stocks.

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.

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.