Blackstone Mortgage Trust (NYSE:BXMT – Get Free Report) and NexPoint Real Estate Finance (NYSE:NREF – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Dividends
Blackstone Mortgage Trust pays an annual dividend of $1.88 per share and has a dividend yield of 10.1%. NexPoint Real Estate Finance pays an annual dividend of $2.00 per share and has a dividend yield of 14.3%. Blackstone Mortgage Trust pays out -2,685.7% of its earnings in the form of a dividend. NexPoint Real Estate Finance pays out 83.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation and Earnings
This table compares Blackstone Mortgage Trust and NexPoint Real Estate Finance”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Blackstone Mortgage Trust | $1.77 billion | 1.80 | -$204.09 million | ($0.07) | -264.86 |
| NexPoint Real Estate Finance | $72.51 million | 3.41 | $29.19 million | $2.41 | 5.79 |
NexPoint Real Estate Finance has lower revenue, but higher earnings than Blackstone Mortgage Trust. Blackstone Mortgage Trust is trading at a lower price-to-earnings ratio than NexPoint Real Estate Finance, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Blackstone Mortgage Trust and NexPoint Real Estate Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Blackstone Mortgage Trust | -0.83% | 5.17% | 0.95% |
| NexPoint Real Estate Finance | 81.96% | 21.49% | 1.34% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Blackstone Mortgage Trust and NexPoint Real Estate Finance, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Blackstone Mortgage Trust | 1 | 4 | 1 | 0 | 2.00 |
| NexPoint Real Estate Finance | 1 | 3 | 0 | 0 | 1.75 |
Blackstone Mortgage Trust currently has a consensus price target of $19.50, suggesting a potential upside of 5.18%. NexPoint Real Estate Finance has a consensus price target of $14.75, suggesting a potential upside of 5.66%. Given NexPoint Real Estate Finance’s higher probable upside, analysts clearly believe NexPoint Real Estate Finance is more favorable than Blackstone Mortgage Trust.
Volatility & Risk
Blackstone Mortgage Trust has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, NexPoint Real Estate Finance has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.
Insider & Institutional Ownership
64.2% of Blackstone Mortgage Trust shares are owned by institutional investors. Comparatively, 67.8% of NexPoint Real Estate Finance shares are owned by institutional investors. 1.0% of Blackstone Mortgage Trust shares are owned by company insiders. Comparatively, 54.0% of NexPoint Real Estate Finance shares are owned 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.
Summary
NexPoint Real Estate Finance beats Blackstone Mortgage Trust on 12 of the 16 factors compared between the two stocks.
About Blackstone Mortgage Trust
Blackstone Mortgage Trust, Inc., a real estate finance company, originates senior loans collateralized by commercial properties in North America, Europe, and Australia. The company originates and acquires senior floating rate mortgage loans that are secured by a first-priority mortgage on commercial real estate assets. It operates as a real estate investment trust for federal income tax purposes. The company was formerly known as Capital Trust, Inc. and changed its name to Blackstone Mortgage Trust, Inc. in May 2013. Blackstone Mortgage Trust, Inc. was incorporated in 1998 and is headquartered in New York, New York.
About NexPoint Real Estate Finance
NexPoint Real Estate Finance, Inc. operates as a commercial mortgage real estate investment trust in the United States. It focuses on originating, structuring, and investing in first-lien mortgage loans, mezzanine loans, preferred equity, convertible notes, multifamily properties, and common equity investments, as well as multifamily and single-family rental commercial mortgage-backed securities securitizations, multifamily structured credit risk notes, and mortgage-backed securities or target assets. The company has elected to be taxed as a real estate investment trust (REIT) and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. NexPoint Real Estate Finance, Inc. was incorporated in 2019 and is based in Dallas, Texas.
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