Reviewing American Campus Communities (ACC) and NexPoint Residential Trust (NXRT)
NexPoint Residential Trust (NASDAQ: NXRT) and American Campus Communities (NYSE:ACC) are both financials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitabiliy, dividends, risk and analyst recommendations.
American Campus Communities pays an annual dividend of $1.76 per share and has a dividend yield of 3.6%. NexPoint Residential Trust does not pay a dividend. American Campus Communities pays out 270.8% 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 4 consecutive years.
This table compares NexPoint Residential Trust and American Campus Communities’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NexPoint Residential Trust||-8.93%||-6.36%||-1.27%|
|American Campus Communities||11.23%||2.53%||1.43%|
This is a breakdown of current ratings and recommmendations for NexPoint Residential Trust and American Campus Communities, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NexPoint Residential Trust||0||0||4||0||3.00|
|American Campus Communities||1||6||3||0||2.20|
NexPoint Residential Trust presently has a consensus price target of $25.00, indicating a potential downside of 2.23%. American Campus Communities has a consensus price target of $51.57, indicating a potential upside of 6.40%. Given American Campus Communities’ higher probable upside, analysts plainly believe American Campus Communities is more favorable than NexPoint Residential Trust.
Earnings & Valuation
This table compares NexPoint Residential Trust and American Campus Communities’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NexPoint Residential Trust||$136.33 million||3.95||$58.66 million||N/A||N/A|
|American Campus Communities||$779.30 million||8.34||$385.32 million||$0.65||74.57|
American Campus Communities has higher revenue and earnings than NexPoint Residential Trust.
American Campus Communities beats NexPoint Residential Trust on 9 of the 13 factors compared between the two stocks.
About NexPoint Residential Trust
NexPoint Residential Trust, Inc. is an externally managed real estate investment trust (REIT). The Company’s investment objectives are to maximize the cash flow and value of properties owned, acquire properties with cash flow growth potential, provide quarterly cash distributions and achieve long-term capital appreciation for its stockholders through targeted management and a value-add program. The Company is focused on multifamily investments primarily located in the Southeastern and Southwestern United States. All of the Company’s business operations are conducted through NexPoint Residential Trust Operating Partnership, L.P. (OP). The sole limited partner of the OP is the Company. Its subsidiary, NexPoint Residential Trust Operating Partnership GP, LLC, is the sole general partner of the OP. As of December 31, 2016, the Company owned 39 properties representing 12,965 units in eight states, including two Parked Assets. The Company’s advisor is NexPoint Real Estate Advisors, L.P.
About American Campus Communities
American Campus Communities, Inc. is a self-managed and self-administered equity real estate investment trust (REIT). The Company’s segments include Wholly-Owned Properties, On-Campus Participating Properties, Development Services, and Property Management Services. It is engaged in the acquisition, design, financing, development, construction management, leasing and management of student housing properties. The Wholly-Owned Properties segment consists of off-campus properties, which are located in close proximity to the school campus. The On-Campus Participating Properties segment includes on-campus properties that are operated under long-term ground/facility leases with three university systems. The Development Services segment consists of development and construction management services that it provides through one of its taxable REIT subsidiaries for third-party owners. The Property Management Services segment includes revenues generated from third-party management contracts.
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