NexPoint Residential Trust (NYSE: NXRT) and Campus Crest Communities (NYSE:CCG) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.

Analyst Ratings

This is a summary of current ratings for NexPoint Residential Trust and Campus Crest Communities, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NexPoint Residential Trust 0 1 2 0 2.67
Campus Crest Communities 0 0 0 0 N/A

NexPoint Residential Trust currently has a consensus price target of $28.00, indicating a potential upside of 19.50%. Given NexPoint Residential Trust’s higher possible upside, equities analysts plainly believe NexPoint Residential Trust is more favorable than Campus Crest Communities.

Dividends

NexPoint Residential Trust pays an annual dividend of $0.88 per share and has a dividend yield of 3.8%. Campus Crest Communities does not pay a dividend. NexPoint Residential Trust pays out 172.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NexPoint Residential Trust has increased its dividend for 4 consecutive years.

Profitability

This table compares NexPoint Residential Trust and Campus Crest Communities’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NexPoint Residential Trust 9.27% 5.39% 1.26%
Campus Crest Communities -31.59% -12.51% -3.56%

Institutional & Insider Ownership

57.6% of NexPoint Residential Trust shares are held by institutional investors. 16.6% of NexPoint Residential Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares NexPoint Residential Trust and Campus Crest Communities’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NexPoint Residential Trust $137.90 million 3.58 $57.99 million $0.51 45.94
Campus Crest Communities N/A N/A N/A N/A N/A

NexPoint Residential Trust has higher revenue and earnings than Campus Crest Communities.

Summary

NexPoint Residential Trust beats Campus Crest Communities on 10 of the 11 factors compared between the two stocks.

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.

Campus Crest Communities Company Profile

Campus Crest Communities, Inc. is a United States-based real estate investment trust (REIT). The Company is engaged in owning and managing a student housing portfolio located close to college campuses. It operates through three segments: Grove and evo operations, Copper Beech operations and property management services. It operates its properties under brands, including The Grove, Copper Beech and evo. It has ownership interests in over 40 student housing Grove properties equipped with approximately 9,100 apartment units and over 24,700 beds. It holds ownership interests in over three evo properties as joint ventures equipped with approximately 1,500 units and over 3,000 beds. It holds interest in over 30 Copper Beech properties equipped with approximately 4,500 units and over 12,200 beds, and ownership interests in over five properties with approximately 1,700 units and over 4,300 beds. It has ownership interests in approximately 80 student housing properties across North America.

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