Critical Analysis: NexPoint Residential Trust (NYSE:NXRT) and Klépierre (OTCMKTS:KLPEF)

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NexPoint Residential Trust	0	3	3	0	2.50
Klépierre	0	1	0	0	2.00

NexPoint Residential Trust presently has a consensus target price of $46.83, indicating a potential upside of 1.44%. Given NexPoint Residential Trust’s stronger consensus rating and higher probable upside, analysts clearly believe NexPoint Residential Trust is more favorable than Klépierre.

Valuation and Earnings

This table compares NexPoint Residential Trust and Klépierre”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NexPoint Residential Trust	$264.80 million	4.43	$44.26 million	$1.75	26.38
Klépierre	$1.62 billion	N/A	$208.56 million	N/A	N/A

Klépierre has higher revenue and earnings than NexPoint Residential Trust.

Insider & Institutional Ownership

76.6% of NexPoint Residential Trust shares are owned by institutional investors. 13.0% of NexPoint Residential Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NexPoint Residential Trust	17.54%	9.54%	2.29%
Klépierre	N/A	N/A	N/A

Volatility & Risk

NexPoint Residential Trust has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Klépierre has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500.

Summary

NexPoint Residential Trust beats Klépierre on 8 of the 11 factors compared between the two stocks.

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.

About Klépierre

Klépierre SA is the European leader in shopping malls, combining property development and asset management skills. The Company's portfolio is valued at 19.3 billion at December 31, 2023, and comprises large shopping centers in more than 10 countries in Continental Europe which together host hundreds of millions of visitors per year. Klépierre SA holds a controlling stake in Steen & Strøm (56.1%), Scandinavia's number one shopping center owner and manager. Klépierre SA is a French REIT (SIIC) listed on Euronext Paris and is included in the CAC Next 20 and EPRA Euro Zone Indexes. It is also included in ethical indexes, such as Euronext CAC 40 ESG, Euronext CAC SBT 1.5, MSCI Europe ESG Leaders, FTSE4Good, Euronext Vigeo Europe 120, and features in CDP's A-list. These distinctions underscore the Group's commitment to a proactive sustainable development policy and its global leadership in the fight against climate change.