Presidio Property Trust (NASDAQ:SQFT – Get Free Report) and NexPoint Residential Trust (NYSE:NXRT – Get Free Report) are both small-cap industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.
Insider and Institutional Ownership
38.9% of Presidio Property Trust shares are owned by institutional investors. Comparatively, 76.6% of NexPoint Residential Trust shares are owned by institutional investors. 10.6% of Presidio Property Trust shares are owned by company insiders. Comparatively, 13.0% of NexPoint Residential Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Presidio Property Trust and NexPoint Residential Trust, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Presidio Property Trust | 0 | 0 | 0 | 0 | N/A |
NexPoint Residential Trust | 1 | 2 | 2 | 0 | 2.20 |
Dividends
Presidio Property Trust pays an annual dividend of $0.09 per share and has a dividend yield of 10.3%. NexPoint Residential Trust pays an annual dividend of $1.85 per share and has a dividend yield of 5.9%. Presidio Property Trust pays out 6.3% of its earnings in the form of a dividend. NexPoint Residential Trust pays out 110.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Presidio Property Trust has increased its dividend for 1 consecutive years and NexPoint Residential Trust has increased its dividend for 8 consecutive years. Presidio Property Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Presidio Property Trust and NexPoint Residential Trust’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Presidio Property Trust | 107.48% | -6.80% | -1.79% |
NexPoint Residential Trust | 15.97% | 8.92% | 2.04% |
Risk and Volatility
Presidio Property Trust has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500. Comparatively, NexPoint Residential Trust has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.
Earnings & Valuation
This table compares Presidio Property 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 | |
Presidio Property Trust | $17.64 million | 0.71 | -$2.13 million | $1.42 | 0.61 |
NexPoint Residential Trust | $277.53 million | 2.91 | $44.26 million | $1.68 | 18.65 |
NexPoint Residential Trust has higher revenue and earnings than Presidio Property Trust. Presidio Property Trust is trading at a lower price-to-earnings ratio than NexPoint Residential Trust, indicating that it is currently the more affordable of the two stocks.
Summary
NexPoint Residential Trust beats Presidio Property Trust on 12 of the 16 factors compared between the two stocks.
About Presidio Property Trust
Presidio is an internally managed, diversified REIT with holdings in model home properties which are triple-net leased to homebuilders, office, industrial, and retail properties. Presidio's model homes are leased to homebuilders located in Arizona, Illinois, Texas, Wisconsin, and Florida. Our office, industrial and retail properties are located primarily in Colorado, with properties also located in Maryland, North Dakota, Texas, and Southern California. While geographical clustering of real estate enables us to reduce our operating costs through economies of scale by servicing several properties with less staff, it makes us susceptible to changing market conditions in these discrete geographic areas, including those that have developed as a result of COVID-19. Presidio owns approximately 6.5% of the outstanding common stock of Conduit Pharmaceuticals Inc., a disease agnostic multi-asset clinical-stage disease-agnostic life science company providing an efficient model for compound development.
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.
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