Financial Survey: NexPoint Residential Trust (NYSE:NXRT) and Boardwalk Real Estate Investment Trust (OTCMKTS:BOWFF)

Boardwalk Real Estate Investment Trust (OTCMKTS:BOWFF) and NexPoint Residential Trust (NYSE:NXRT) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Earnings and Valuation

This table compares Boardwalk Real Estate Investment Trust and NexPoint Residential Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boardwalk Real Estate Investment Trust	$440.33 million	5.43	$429.28 million	$3.09	15.80
NexPoint Residential Trust	$252.99 million	3.08	$1.11 million	($1.92)	-15.98

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

Dividends

Boardwalk Real Estate Investment Trust pays an annual dividend of $1.18 per share and has a dividend yield of 2.4%. NexPoint Residential Trust pays an annual dividend of $2.12 per share and has a dividend yield of 6.9%. Boardwalk Real Estate Investment Trust pays out 38.2% of its earnings in the form of a dividend. NexPoint Residential Trust pays out -110.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NexPoint Residential Trust has increased 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Boardwalk Real Estate Investment Trust and NexPoint Residential Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boardwalk Real Estate Investment Trust	0	0	0	0	0.00
NexPoint Residential Trust	2	6	0	0	1.75

NexPoint Residential Trust has a consensus price target of $40.13, suggesting a potential upside of 30.80%. Given NexPoint Residential Trust’s stronger consensus rating and higher probable upside, analysts plainly believe NexPoint Residential Trust is more favorable than Boardwalk Real Estate Investment Trust.

Insider and Institutional Ownership

76.6% of NexPoint Residential Trust shares are owned by institutional investors. 19.0% of Boardwalk Real Estate Investment Trust shares are owned by insiders. Comparatively, 15.4% of NexPoint Residential Trust shares are owned 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.

Volatility & Risk

Boardwalk Real Estate Investment Trust has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, NexPoint Residential Trust has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Profitability

This table compares Boardwalk Real Estate Investment Trust and NexPoint Residential Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boardwalk Real Estate Investment Trust	49.45%	6.30%	3.54%
NexPoint Residential Trust	-19.23%	-13.32%	-2.60%

Summary

Boardwalk Real Estate Investment Trust beats NexPoint Residential Trust on 9 of the 16 factors compared between the two stocks.

About Boardwalk Real Estate Investment Trust

Boardwalk REIT strives to be Canada’s friendliest community provider and is a leading owner/operator of multi-family rental communities. Providing homes in more than 200 communities, with over 34,000 residential suites totaling over 29 million net rentable square feet, Boardwalk has a proven long-term track record of building better communities, where love always lives. Our three-tiered and distinct brands: Boardwalk Living, Boardwalk Communities, and Boardwalk Lifestyle, cater to a large diverse demographic and has evolved to capture the life cycle of all Resident Members. Boardwalk’s disciplined approach to capital allocation, acquisition, development, purposeful re-positioning, and management of apartment communities allows the Trust to provide its brand of community across Canada creating exceptional Resident Member experiences. Differentiated by its peak performance culture, Boardwalk is committed to delivering exceptional service, product quality and experience to our Resident Members who reward us with high retention and market leading operating results, which in turn, lead to higher free cash flow and investment returns, stable monthly distributions, and value creation for all our stakeholders. Boardwalk REIT’s Trust Units are listed on the Toronto Stock Exchange, trading under the symbol BEI.UN.

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.