New Senior Investment Group (NYSE: SNR) and NexPoint Residential Trust (NASDAQ:NXRT) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Earnings & Valuation

This table compares New Senior Investment Group and NexPoint Residential Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
New Senior Investment Group $465.21 million 1.70 $188.75 million ($0.36) -26.72
NexPoint Residential Trust $137.90 million 3.54 $57.99 million N/A N/A

New Senior Investment Group has higher revenue and earnings than NexPoint Residential Trust.

Dividends

New Senior Investment Group pays an annual dividend of $1.04 per share and has a dividend yield of 10.8%. NexPoint Residential Trust does not pay a dividend. New Senior Investment Group pays out -288.9% of its earnings in the form of a dividend.

Institutional and Insider Ownership

64.3% of New Senior Investment Group shares are held by institutional investors. 1.0% of New Senior Investment Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares New Senior Investment Group and NexPoint Residential Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
New Senior Investment Group -6.41% -5.28% -1.06%
NexPoint Residential Trust 28.18% 14.15% 3.70%

Analyst Ratings

This is a breakdown of current ratings and target prices for New Senior Investment Group and NexPoint Residential Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
New Senior Investment Group 1 1 1 0 2.00
NexPoint Residential Trust 0 0 3 0 3.00

New Senior Investment Group presently has a consensus price target of $9.50, indicating a potential downside of 1.25%. NexPoint Residential Trust has a consensus price target of $26.00, indicating a potential upside of 12.07%. Given NexPoint Residential Trust’s stronger consensus rating and higher possible upside, analysts plainly believe NexPoint Residential Trust is more favorable than New Senior Investment Group.

Summary

NexPoint Residential Trust beats New Senior Investment Group on 7 of the 13 factors compared between the two stocks.

About New Senior Investment Group

New Senior Investment Group Inc. is a real estate investment trust with a diversified portfolio of primarily private pay senior housing properties located across the United States. The Company operates through two segments: Managed Properties and Triple Net Lease Properties. As of December 31, 2016, the Company owned a diversified portfolio of 152 primarily private pay senior housing properties located across 37 states. Under its Managed Properties segment, the Company invests in senior housing properties throughout the United States and engages property managers to manage those senior housing properties. As of December 31, 2016, the Company owned 94 properties under property management agreements with the property managers. Under its Triple Net Lease Properties segment, the Company invests in senior housing and healthcare properties throughout the United States, and leases those properties to healthcare operating companies under triple net leases.

About NexPoint Residential Trust

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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