NexPoint Residential Trust (NYSE:NXRT) and LXP Industrial Trust (NYSE:LXP) Financial Survey

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

Analyst Ratings

This is a breakdown of current ratings and target prices for LXP Industrial Trust and NexPoint Residential Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LXP Industrial Trust	0	3	4	0	2.57
NexPoint Residential Trust	2	6	0	0	1.75

LXP Industrial Trust presently has a consensus price target of $54.00, suggesting a potential upside of 8.01%. NexPoint Residential Trust has a consensus price target of $40.13, suggesting a potential upside of 39.20%. Given NexPoint Residential Trust’s higher possible upside, analysts clearly believe NexPoint Residential Trust is more favorable than LXP Industrial Trust.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LXP Industrial Trust	32.19%	5.86%	3.12%
NexPoint Residential Trust	-19.23%	-13.32%	-2.60%

Insider & Institutional Ownership

93.5% of LXP Industrial Trust shares are held by institutional investors. Comparatively, 76.6% of NexPoint Residential Trust shares are held by institutional investors. 2.2% of LXP Industrial Trust shares are held by company insiders. Comparatively, 15.4% of NexPoint Residential Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares LXP Industrial 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
LXP Industrial Trust	$358.46 million	8.25	$44.53 million	$1.90	26.31
NexPoint Residential Trust	$259.70 million	2.81	$1.11 million	($1.92)	-15.01

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

Volatility & Risk

LXP Industrial Trust has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, NexPoint Residential Trust has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Dividends

LXP Industrial Trust pays an annual dividend of $2.70 per share and has a dividend yield of 5.4%. NexPoint Residential Trust pays an annual dividend of $2.04 per share and has a dividend yield of 7.1%. LXP Industrial Trust pays out 142.1% 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 -106.3% of its earnings in the form of a dividend. LXP Industrial Trust has raised its dividend for 3 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 lower payout ratio.

Summary

LXP Industrial Trust beats NexPoint Residential Trust on 11 of the 16 factors compared between the two stocks.

About LXP Industrial Trust

LXP Industrial Trust (NYSE: LXP) is a publicly traded real estate investment trust (REIT) focused on single-tenant industrial real estate investments across the United States. LXP seeks to expand its industrial portfolio through acquisitions, build-to-suit transactions, sale-leaseback transactions, development projects and other transactions.

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.