Analyzing Education Realty Trust (EDR) & NexPoint Residential Trust (NXRT)
Education Realty Trust (NYSE: EDR) and NexPoint Residential Trust (NASDAQ:NXRT) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.
This is a breakdown of recent ratings for Education Realty Trust and NexPoint Residential Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Education Realty Trust||1||7||5||0||2.31|
|NexPoint Residential Trust||0||0||3||0||3.00|
Education Realty Trust currently has a consensus price target of $44.67, suggesting a potential upside of 14.12%. NexPoint Residential Trust has a consensus price target of $26.00, suggesting a potential upside of 10.36%. Given Education Realty Trust’s higher possible upside, equities research analysts plainly believe Education Realty Trust is more favorable than NexPoint Residential Trust.
Valuation & Earnings
This table compares Education Realty Trust and NexPoint Residential Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Education Realty Trust||$310.48 million||9.23||$143.74 million||$0.42||93.19|
|NexPoint Residential Trust||$137.90 million||3.60||$57.99 million||N/A||N/A|
Education Realty Trust has higher revenue and earnings than NexPoint Residential Trust.
This table compares Education Realty Trust and NexPoint Residential Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Education Realty Trust||10.58%||1.83%||1.25%|
|NexPoint Residential Trust||28.18%||14.15%||3.70%|
Education Realty Trust pays an annual dividend of $1.56 per share and has a dividend yield of 4.0%. NexPoint Residential Trust does not pay a dividend. Education Realty Trust pays out 371.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Education Realty Trust has increased its dividend for 6 consecutive years.
Education Realty Trust beats NexPoint Residential Trust on 8 of the 13 factors compared between the two stocks.
Education Realty Trust Company Profile
Education Realty Trust, Inc. (EdR) is a self-managed and self-advised real estate investment trust (REIT). The Trust is engaged in developing, acquiring, owning and managing collegiate housing communities located near university campuses. The Trust operates through three segments: collegiate housing leasing, development consulting services and management services. The Trust develops collegiate housing communities for its own account and also provides third-party development consulting services on collegiate housing development projects for universities and other third parties. As of December 31, 2016, the Trust owned 64 collegiate housing communities located in 22 states containing 32,729 beds in 12,294 apartment units on or near 38 university campuses. As of December 31, 2016, the Trust provided third-party management services for 22 collegiate housing communities located in 11 states containing 11,767 beds in 4,214 apartment units on or near 17 university campuses.
NexPoint Residential Trust Company Profile
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.
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