NexPoint Residential Trust (NXRT) Competitors

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

Does the media prefer NXRT or AVB?

In the previous week, AvalonBay Communities had 8 more articles in the media than NexPoint Residential Trust. MarketBeat recorded 13 mentions for AvalonBay Communities and 5 mentions for NexPoint Residential Trust. NexPoint Residential Trust's average media sentiment score of 1.72 beat AvalonBay Communities' score of 1.07 indicating that NexPoint Residential Trust is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
NexPoint Residential Trust	4 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
AvalonBay Communities	10 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

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 6.0%. AvalonBay Communities pays an annual dividend of $7.00 per share and has a dividend yield of 3.4%. NexPoint Residential Trust pays out -159.4% of its earnings in the form of a dividend. AvalonBay Communities pays out 87.2% 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 increased its dividend for 3 consecutive years and AvalonBay Communities has increased its dividend for 3 consecutive years. NexPoint Residential Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has more volatility and risk, NXRT or AVB?

NexPoint Residential Trust has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, AvalonBay Communities has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Which has better valuation & earnings, 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	$259.70M	3.31	$1.11M	-$1.28	-26.55
AvalonBay Communities	$2.91B	9.96	$1.08B	$8.03	25.39

Do analysts prefer NXRT or AVB?

NexPoint Residential Trust currently has a consensus target price of $43.58, indicating a potential upside of 28.22%. AvalonBay Communities has a consensus target price of $235.86, indicating a potential upside of 15.67%. Given NexPoint Residential Trust's higher probable upside, 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

Is NXRT or AVB more profitable?

AvalonBay Communities has a net margin of 38.86% compared to NexPoint Residential Trust's net margin of -12.57%. AvalonBay Communities' return on equity of 9.65% beat NexPoint Residential Trust's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
NexPoint Residential Trust	-12.57%	-7.42%	-1.66%
AvalonBay Communities	38.86%	9.65%	5.42%

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

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

Summary

AvalonBay Communities beats NexPoint Residential Trust on 12 of the 18 factors compared between the two stocks.