Colony Starwood Homes (SFR) and NexPoint Residential Trust (NASDAQ:NXRT) Critical Survey

Colony Starwood Homes (NYSE: SFR) and NexPoint Residential Trust (NASDAQ:NXRT) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.

Earnings & Valuation

This table compares Colony Starwood Homes and NexPoint Residential Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Colony Starwood Homes $575.68 million 8.54 -$81.26 million ($0.40) -95.75
NexPoint Residential Trust N/A N/A N/A $2.70 10.05

NexPoint Residential Trust has higher revenue, but lower earnings than Colony Starwood Homes. Colony Starwood Homes 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.


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

Net Margins Return on Equity Return on Assets
Colony Starwood Homes -7.41% -1.11% -0.48%
NexPoint Residential Trust 28.18% 14.15% 3.70%

Analyst Recommendations

This is a summary of current ratings for Colony Starwood Homes and NexPoint Residential Trust, as reported by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Colony Starwood Homes 0 5 6 0 2.55
NexPoint Residential Trust 0 1 4 0 2.80

Colony Starwood Homes currently has a consensus target price of $36.90, suggesting a potential downside of 3.66%. NexPoint Residential Trust has a consensus target price of $27.67, suggesting a potential upside of 1.98%. Given NexPoint Residential Trust’s stronger consensus rating and higher probable upside, analysts plainly believe NexPoint Residential Trust is more favorable than Colony Starwood Homes.


Colony Starwood Homes pays an annual dividend of $0.88 per share and has a dividend yield of 2.3%. NexPoint Residential Trust does not pay a dividend. Colony Starwood Homes pays out -220.0% of its earnings in the form of a dividend.


NexPoint Residential Trust beats Colony Starwood Homes on 6 of the 10 factors compared between the two stocks.

About Colony Starwood Homes

Starwood Waypoint Homes, formerly Colony Starwood Homes, is an internally managed real estate investment trust (REIT). The Company was formed primarily to acquire, renovate, lease and manage residential assets in select markets across the United States. It is focused on acquiring single-family rental (SFR) homes through a variety of channels, renovating these homes to the extent necessary and leasing them to qualified residents. The Company operates through two segments, which are represented by its portfolio of SFR homes and its portfolio of NPLs owned in the joint venture with Prime Asset Fund VI, LLC (Prime). The Company identifies and pursues individual home acquisition opportunities through various sources, including multiple listing services (MLS) listings, foreclosure auctions and short sales. As of December 31, 2016, its SFR portfolio consisted of 31,684 owned homes, including 31,065 rental homes and 619 homes that it does not intend to hold for the long term.

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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