Invitation Home (NYSE:INVH) & NexPoint Residential Trust (NYSE:NXRT) Head-To-Head Contrast

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

Institutional & Insider Ownership

96.8% of Invitation Home shares are held by institutional investors. Comparatively, 76.6% of NexPoint Residential Trust shares are held by institutional investors. 0.3% of Invitation Home shares are held by insiders. Comparatively, 15.4% of NexPoint Residential Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Invitation Home and NexPoint Residential Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Invitation Home	$2.62 billion	7.14	$453.92 million	$0.88	34.68
NexPoint Residential Trust	$259.70 million	3.14	$1.11 million	($1.96)	-16.41

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

Profitability

This table compares Invitation Home and NexPoint Residential Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invitation Home	20.36%	5.56%	2.88%
NexPoint Residential Trust	-19.55%	-12.54%	-2.62%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Invitation Home and NexPoint Residential Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invitation Home	0	9	8	0	2.47
NexPoint Residential Trust	0	7	0	0	2.00

Invitation Home currently has a consensus target price of $37.2647, indicating a potential upside of 22.12%. NexPoint Residential Trust has a consensus target price of $41.50, indicating a potential upside of 29.01%. Given NexPoint Residential Trust’s higher possible upside, analysts clearly believe NexPoint Residential Trust is more favorable than Invitation Home.

Risk & Volatility

Invitation Home has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, NexPoint Residential Trust has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Dividends

Invitation Home pays an annual dividend of $1.16 per share and has a dividend yield of 3.8%. NexPoint Residential Trust pays an annual dividend of $2.04 per share and has a dividend yield of 6.3%. Invitation Home pays out 131.8% 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 pays out -104.1% of its earnings in the form of a dividend. Invitation Home has raised its dividend for 1 consecutive years and NexPoint Residential Trust has raised its dividend for 3 consecutive years. NexPoint Residential Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Invitation Home beats NexPoint Residential Trust on 11 of the 17 factors compared between the two stocks.

About Invitation Home

Invitation Homes, an S&P 500 company, is the nation's premier single-family home leasing and management company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company's mission, Together with you, we make a house a home, reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.

About NexPoint Residential Trust

NexPoint Residential Trust is a publicly traded REIT, with its shares listed on the New York Stock Exchange under the symbol “NXRT,” primarily focused on acquiring, owning and operating well-located middle-income multifamily properties with “value-add” potential in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States. NXRT is externally advised by NexPoint Real Estate Advisors, L.P., an affiliate of NexPoint Advisors, L.P., an SEC-registered investment advisor, which has extensive real estate experience.