American Assets Trust (NYSE:AAT – Get Free Report) and NexPoint Diversified Real Estate Trust (NYSE:NXDT – Get Free Report) are both real estate companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Profitability
This table compares American Assets Trust and NexPoint Diversified Real Estate Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Assets Trust | 4.09% | 1.66% | 0.62% |
| NexPoint Diversified Real Estate Trust | N/A | N/A | N/A |
Analyst Recommendations
This is a summary of recent ratings and price targets for American Assets Trust and NexPoint Diversified Real Estate Trust, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Assets Trust | 1 | 1 | 0 | 0 | 1.50 |
| NexPoint Diversified Real Estate Trust | 0 | 0 | 0 | 0 | 0.00 |
Dividends
American Assets Trust pays an annual dividend of $1.36 per share and has a dividend yield of 6.0%. NexPoint Diversified Real Estate Trust pays an annual dividend of $0.48 per share and has a dividend yield of 8.7%. American Assets Trust pays out 469.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Assets Trust has raised its dividend for 4 consecutive years.
Valuation & Earnings
This table compares American Assets Trust and NexPoint Diversified Real Estate Trust”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Assets Trust | $436.20 million | 3.17 | $71.37 million | $0.29 | 77.72 |
| NexPoint Diversified Real Estate Trust | -$1.43 million | N/A | N/A | N/A | N/A |
American Assets Trust has higher revenue and earnings than NexPoint Diversified Real Estate Trust.
Institutional and Insider Ownership
90.4% of American Assets Trust shares are held by institutional investors. 37.9% of American Assets Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
American Assets Trust beats NexPoint Diversified Real Estate Trust on 9 of the 11 factors compared between the two stocks.
About American Assets Trust
American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust ("REIT"), headquartered in San Diego, California. The company has over 55 years of experience in acquiring, improving, developing and managing premier office, retail, and residential properties throughout the United States in some of the nation's most dynamic, high-barrier-to-entry markets primarily in Southern California, Northern California, Washington, Oregon, Texas and Hawaii. The company's office portfolio comprises approximately 4.1 million rentable square feet, and its retail portfolio comprises approximately 3.1 million rentable square feet. In addition, the company owns one mixed-use property (including approximately 94,000 rentable square feet of retail space and a 369-room all-suite hotel) and 2,110 multifamily units. In 2011, the company was formed to succeed to the real estate business of American Assets, Inc., a privately held corporation founded in 1967 and, as such, has significant experience, long-standing relationships and extensive knowledge of its core markets, submarkets and asset classes.
About NexPoint Diversified Real Estate Trust
NexPoint Diversified Real Estate Trust (NXDT) is an externally advised diversified real estate investment trust (REIT), with its shares of common stock and 5.50% Series A Cumulative Preferred Shares listed on the New York Stock Exchange under the symbols NXDT and NXDT-PA, respectively. As a diversified REIT, NXDT's primary investment objective is to provide both current income and capital appreciation. NXDT seeks to achieve this objective by investing among various commercial real estate property types and across the capital structure, including but not limited to mortgage debt, mezzanine debt and common and preferred equity. Target underlying property types primarily include but are not limited to industrial, hospitality, net lease, retail, office, storage and healthcare and, to the extent currently owned, multifamily and single-family rentals. NXDT also may, to a limited extent, hold, acquire or transact in certain non-real estate securities.
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