NexPoint Real Estate Finance (NYSE:NREF – Get Free Report) and Selectis Health (OTCMKTS:GBCS – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.
Insider & Institutional Ownership
67.8% of NexPoint Real Estate Finance shares are owned by institutional investors. 54.0% of NexPoint Real Estate Finance shares are owned by company insiders. Comparatively, 15.2% of Selectis Health shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Dividends
NexPoint Real Estate Finance pays an annual dividend of $2.00 per share and has a dividend yield of 12.8%. Selectis Health pays an annual dividend of $0.04 per share and has a dividend yield of 2.3%. NexPoint Real Estate Finance pays out 190.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Selectis Health pays out -2.2% of its earnings in the form of a dividend.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NexPoint Real Estate Finance | $22.25 million | 12.25 | $13.98 million | $1.05 | 14.87 |
| Selectis Health | $36.78 million | 0.15 | -$3.97 million | ($1.79) | -0.98 |
NexPoint Real Estate Finance has higher earnings, but lower revenue than Selectis Health. Selectis Health 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.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for NexPoint Real Estate Finance and Selectis Health, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NexPoint Real Estate Finance | 0 | 4 | 0 | 0 | 2.00 |
| Selectis Health | 0 | 0 | 0 | 0 | 0.00 |
NexPoint Real Estate Finance presently has a consensus price target of $14.75, suggesting a potential downside of 5.51%. Given NexPoint Real Estate Finance’s stronger consensus rating and higher possible upside, research analysts plainly believe NexPoint Real Estate Finance is more favorable than Selectis Health.
Profitability
This table compares NexPoint Real Estate Finance and Selectis Health’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NexPoint Real Estate Finance | N/A | 11.39% | 0.58% |
| Selectis Health | -14.37% | N/A | -14.59% |
Risk & Volatility
NexPoint Real Estate Finance has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500. Comparatively, Selectis Health has a beta of -0.29, suggesting that its stock price is 129% less volatile than the S&P 500.
Summary
NexPoint Real Estate Finance beats Selectis Health on 13 of the 15 factors compared between the two stocks.
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.
About Selectis Health
Selectis Health owns and/or operates healthcare facilities in Arkansas, Georgia, Ohio, and Oklahoma, providing a wide array of living services, speech, occupational, physical therapies, social services, and other rehabilitation and healthcare services. Selectis focuses on building strategic relationships with local communities in which its partnership can improve the quality of care for facility residents. With its focused growth strategy, Selectis intends to deepen its American Southcentral and Southeastern market presence to better serve the aging population along a full continuum of care.
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