KKR Real Estate Finance Trust (NYSE: KREF) is one of 32 public companies in the “Mortgage REITs” industry, but how does it compare to its competitors? We will compare KKR Real Estate Finance Trust to similar companies based on the strength of its risk, dividends, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and price targets for KKR Real Estate Finance Trust and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KKR Real Estate Finance Trust 0 3 0 0 2.00
KKR Real Estate Finance Trust Competitors 119 869 894 35 2.44

KKR Real Estate Finance Trust presently has a consensus price target of $22.50, suggesting a potential upside of 7.19%. As a group, “Mortgage REITs” companies have a potential upside of 4.69%. Given KKR Real Estate Finance Trust’s higher possible upside, research analysts clearly believe KKR Real Estate Finance Trust is more favorable than its competitors.

Insider & Institutional Ownership

65.7% of KKR Real Estate Finance Trust shares are owned by institutional investors. Comparatively, 57.3% of shares of all “Mortgage REITs” companies are owned by institutional investors. 3.6% of shares of all “Mortgage REITs” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares KKR Real Estate Finance Trust and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
KKR Real Estate Finance Trust $41.19 million $31.15 million 20.18
KKR Real Estate Finance Trust Competitors $371.19 million $190.39 million 2.41

KKR Real Estate Finance Trust’s competitors have higher revenue and earnings than KKR Real Estate Finance Trust. KKR Real Estate Finance Trust is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

KKR Real Estate Finance Trust pays an annual dividend of $1.48 per share and has a dividend yield of 7.1%. KKR Real Estate Finance Trust pays out 142.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Mortgage REITs” companies pay a dividend yield of 9.4% and pay out 90.2% of their earnings in the form of a dividend. KKR Real Estate Finance Trust lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares KKR Real Estate Finance Trust and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KKR Real Estate Finance Trust 77.41% 6.08% 0.75%
KKR Real Estate Finance Trust Competitors 55.57% 9.79% 1.94%

Summary

KKR Real Estate Finance Trust competitors beat KKR Real Estate Finance Trust on 10 of the 13 factors compared.

KKR Real Estate Finance Trust Company Profile

KKR Real Estate Finance Trust Inc is a real estate finance company that focuses primarily on originating and acquiring senior mortgage loans secured by commercial real estate assets (CRE). KKR manages investments across multiple asset classes, including private equity, real estate, energy, infrastructure, credit and hedge funds. The Company’s investment strategy is to originate or acquire senior mortgage loans collateralized by institutional-quality CRE assets. Its target assets also include mezzanine loans, preferred equity and other debt-oriented instruments. The Company’s investment objective is capital preservation and generating attractive risk-adjusted returns for its stockholders over the long term, primarily through dividends.

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