Analyzing Ryman Hospitality Properties (NYSE:RHP) and NexPoint Real Estate Finance (NYSE:NREF)

NexPoint Real Estate Finance (NYSE:NREF) and Ryman Hospitality Properties (NYSE:RHP) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Analyst Ratings

This is a breakdown of current ratings and target prices for NexPoint Real Estate Finance and Ryman Hospitality Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NexPoint Real Estate Finance	0	3	0	0	2.00
Ryman Hospitality Properties	0	1	4	0	2.80

NexPoint Real Estate Finance currently has a consensus price target of $13.75, suggesting a potential downside of 9.42%. Ryman Hospitality Properties has a consensus price target of $124.20, suggesting a potential upside of 11.54%. Given Ryman Hospitality Properties’ stronger consensus rating and higher possible upside, analysts clearly believe Ryman Hospitality Properties is more favorable than NexPoint Real Estate Finance.

Institutional and Insider Ownership

67.8% of NexPoint Real Estate Finance shares are owned by institutional investors. Comparatively, 94.5% of Ryman Hospitality Properties shares are owned by institutional investors. 54.0% of NexPoint Real Estate Finance shares are owned by company insiders. Comparatively, 3.0% of Ryman Hospitality Properties shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

NexPoint Real Estate Finance has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, Ryman Hospitality Properties has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500.

Earnings & Valuation

This table compares NexPoint Real Estate Finance and Ryman Hospitality Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NexPoint Real Estate Finance	$68.36 million	3.88	$13.98 million	($0.51)	-29.76
Ryman Hospitality Properties	$2.16 billion	3.09	$311.22 million	$5.33	20.89

Ryman Hospitality Properties has higher revenue and earnings than NexPoint Real Estate Finance. NexPoint Real Estate Finance is trading at a lower price-to-earnings ratio than Ryman Hospitality Properties, indicating that it is currently the more affordable of the two stocks.

Dividends

NexPoint Real Estate Finance pays an annual dividend of $2.00 per share and has a dividend yield of 13.2%. Ryman Hospitality Properties pays an annual dividend of $4.40 per share and has a dividend yield of 4.0%. NexPoint Real Estate Finance pays out -392.2% of its earnings in the form of a dividend. Ryman Hospitality Properties pays out 82.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NexPoint Real Estate Finance is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares NexPoint Real Estate Finance and Ryman Hospitality Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NexPoint Real Estate Finance	N/A	7.15%	0.35%
Ryman Hospitality Properties	14.21%	60.97%	6.39%

Summary

Ryman Hospitality Properties beats NexPoint Real Estate Finance on 11 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 Ryman Hospitality Properties

Ryman Hospitality Properties, Inc. (NYSE: RHP) is a leading lodging and hospitality real estate investment trust that specializes in upscale convention center resorts and entertainment experiences. The Company's holdings include Gaylord Opryland Resort & Convention Center; Gaylord Palms Resort & Convention Center; Gaylord Texan Resort & Convention Center; Gaylord National Resort & Convention Center; and Gaylord Rockies Resort & Convention Center, five of the top seven largest non-gaming convention center hotels in the United States based on total indoor meeting space. The Company also owns the JW Marriott San Antonio Hill Country Resort & Spa as well as two ancillary hotels adjacent to our Gaylord Hotels properties. The Company's hotel portfolio is managed by Marriott International and includes a combined total of 11,414 rooms as well as more than 3 million square feet of total indoor and outdoor meeting space in top convention and leisure destinations across the country. RHP also owns a 70% controlling ownership interest in Opry Entertainment Group (OEG), which is composed of entities owning a growing collection of iconic and emerging country music brands, including the Grand Ole Opry, Ryman Auditorium, WSM 650 AM, Ole Red, Nashville-area attractions, and Block 21, a mixed-use entertainment, lodging, office and retail complex, including the W Austin Hotel and the ACL Live at the Moody Theater, located in downtown Austin, Texas. RHP operates OEG as its Entertainment segment in a taxable REIT subsidiary, and its results are consolidated in the Company's financial results.