AAT vs NXRT

For growth investors, NexPoint Residential Trust, Inc.

(NXRT) is the stronger pick with -3. 2% revenue growth year-over-year, versus -4. 7% for American Assets Trust, Inc. (AAT). American Assets Trust, Inc. (AAT) offers the better valuation at 22. 9x trailing P/E (45. 9x forward), making it the more compelling value choice. Analysts rate American Assets Trust, Inc. (AAT) a "Buy" — based on 11 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, American Assets Trust, Inc.

(AAT) delivered a total return of -21. 6%, compared to -23. 0% for NexPoint Residential Trust, Inc. (NXRT). Over 10 years, the gap is even starker: NXRT returned +211. 1% versus AAT's -21. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), NexPoint Residential Trust, Inc.

(NXRT) is the lower-risk stock at 0. 62β versus American Assets Trust, Inc. 's 0. 64β — meaning AAT is approximately 3% more volatile than NXRT relative to the S&P 500. On balance sheet safety, American Assets Trust, Inc. (AAT) carries a lower debt/equity ratio of 156% versus 5% for NexPoint Residential Trust, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), NexPoint Residential Trust, Inc.

(NXRT) is pulling ahead at -3. 2% versus -4. 7% for American Assets Trust, Inc. (AAT). On earnings-per-share growth, the picture is similar: American Assets Trust, Inc. grew EPS -2. 1% year-over-year, compared to -30. 8% for NexPoint Residential Trust, Inc.. Over a 3-year CAGR, AAT leads at 1. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

American Assets Trust, Inc.

(AAT) is the more profitable company, earning 16. 4% net margin versus -12. 7% for NexPoint Residential Trust, Inc. — meaning it keeps 16. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AAT leads at 33. 5% versus 11. 1% for NXRT. At the gross margin level — before operating expenses — NXRT leads at 84. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

Analyst consensus price targets imply the most upside for NXRT: -9.

4% to $27. 00.

All stocks in this comparison pay dividends.

NexPoint Residential Trust, Inc. (NXRT) offers the highest yield at 7. 1%, versus 6. 5% for American Assets Trust, Inc. (AAT).

For long-horizon retirement investors, NexPoint Residential Trust, Inc.

(NXRT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 62), 7. 1% yield, +211. 1% 10Y return). Both have compounded well over 10 years (NXRT: +211. 1%, AAT: -21. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Real Estate sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.