Reviewing NexPoint Residential Trust (NXRT) and Silver Bay Realty Trust Corp (SBY)
NexPoint Residential Trust (NASDAQ: NXRT) and Silver Bay Realty Trust Corp (NYSE:SBY) are both financials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Silver Bay Realty Trust Corp pays an annual dividend of $0.52 per share and has a dividend yield of 2.4%. NexPoint Residential Trust does not pay a dividend. Silver Bay Realty Trust Corp pays out -325.0% of its earnings in the form of a dividend. Silver Bay Realty Trust Corp has raised its dividend for 3 consecutive years.
This table compares NexPoint Residential Trust and Silver Bay Realty Trust Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NexPoint Residential Trust||28.18%||14.15%||3.70%|
|Silver Bay Realty Trust Corp||-5.71%||-1.42%||-0.61%|
This is a breakdown of current ratings and target prices for NexPoint Residential Trust and Silver Bay Realty Trust Corp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NexPoint Residential Trust||0||0||3||0||3.00|
|Silver Bay Realty Trust Corp||0||4||0||0||2.00|
NexPoint Residential Trust currently has a consensus target price of $26.00, indicating a potential upside of 11.54%. Silver Bay Realty Trust Corp has a consensus target price of $19.83, indicating a potential downside of 7.71%. Given NexPoint Residential Trust’s stronger consensus rating and higher probable upside, equities research analysts plainly believe NexPoint Residential Trust is more favorable than Silver Bay Realty Trust Corp.
Insider & Institutional Ownership
73.6% of Silver Bay Realty Trust Corp shares are owned by institutional investors. 7.3% of Silver Bay Realty Trust Corp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares NexPoint Residential Trust and Silver Bay Realty Trust Corp’s gross 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||3.56||$57.99 million||N/A||N/A|
|Silver Bay Realty Trust Corp||N/A||N/A||N/A||($0.16)||-134.31|
NexPoint Residential Trust has higher revenue and earnings than Silver Bay Realty Trust Corp.
NexPoint Residential Trust beats Silver Bay Realty Trust Corp on 7 of the 12 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.
Silver Bay Realty Trust Corp Company Profile
Silver Bay Realty Trust Corp. is a real estate investment trust. It focuses on the acquisition, renovation, leasing and management of single-family properties in select markets in the United States. As of December 31, 2016, it had owned 9,044 single-family properties in Arizona, California, Florida, Georgia, Nevada, North Carolina, Ohio, South Carolina and Texas. Its investments in real estate consist of single-family properties located in various select markets, including Atlanta, Phoenix, Tampa, Charlotte, Orlando, Dallas, Jacksonville, Northern California, Las Vegas, Columbus, Tucson and Southeast Florida. The Charlotte market includes properties in South Carolina due to its proximity to Charlotte, North Carolina. The Northern California market consists of Contra Costa, Napa and Solano counties. The Southeast Florida market consists of Miami-Dade, Broward and Palm Beach counties. It conducts business and owns all of its properties through Silver Bay Operating Partnership L.P.
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