NexPoint Residential Trust (NXRT) Competitors

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

Which has more volatility and risk, NXRT or AVB?

NexPoint Residential Trust has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, AvalonBay Communities has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Do analysts rate NXRT or AVB?

NexPoint Residential Trust presently has a consensus price target of $41.50, suggesting a potential upside of 31.79%. AvalonBay Communities has a consensus price target of $227.36, suggesting a potential upside of 20.64%. Given NexPoint Residential Trust's higher possible upside, equities analysts plainly believe NexPoint Residential Trust is more favorable than AvalonBay Communities.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NexPoint Residential Trust	0 Sell rating(s)	7 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00
AvalonBay Communities	0 Sell rating(s)	8 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.47

Do institutionals and insiders hold more shares of NXRT or AVB?

76.6% of NexPoint Residential Trust shares are held by institutional investors. Comparatively, 92.6% of AvalonBay Communities shares are held by institutional investors. 15.4% of NexPoint Residential Trust shares are held by company insiders. Comparatively, 0.5% of AvalonBay Communities shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Is NXRT or AVB a better dividend stock?

NexPoint Residential Trust pays an annual dividend of $2.04 per share and has a dividend yield of 6.5%. AvalonBay Communities pays an annual dividend of $7.00 per share and has a dividend yield of 3.7%. NexPoint Residential Trust pays out -104.1% of its earnings in the form of a dividend. AvalonBay Communities pays out 86.2% 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 raised its dividend for 3 consecutive years and AvalonBay Communities has raised its dividend for 3 consecutive years. NexPoint Residential Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Does the media favor NXRT or AVB?

In the previous week, AvalonBay Communities had 21 more articles in the media than NexPoint Residential Trust. MarketBeat recorded 27 mentions for AvalonBay Communities and 6 mentions for NexPoint Residential Trust. AvalonBay Communities' average media sentiment score of 1.05 beat NexPoint Residential Trust's score of 0.76 indicating that AvalonBay Communities is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
NexPoint Residential Trust	3 Very Positive mention(s)	2 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
AvalonBay Communities	17 Very Positive mention(s)	3 Positive mention(s)	2 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has stronger earnings and valuation, NXRT or AVB?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NexPoint Residential Trust	$254.39M	3.14	$1.11M	-$1.96	-16.07
AvalonBay Communities	$2.91B	9.21	$1.08B	$8.12	23.21

Is NXRT or AVB more profitable?

AvalonBay Communities has a net margin of 38.91% compared to NexPoint Residential Trust's net margin of -19.55%. AvalonBay Communities' return on equity of 9.70% beat NexPoint Residential Trust's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
NexPoint Residential Trust	-19.55%	-12.54%	-2.62%
AvalonBay Communities	38.91%	9.70%	5.45%

Summary

AvalonBay Communities beats NexPoint Residential Trust on 13 of the 18 factors compared between the two stocks.