KKR Real Estate Finance Trust (NYSE:KREF – Get Free Report) and Claros Mortgage Trust (NYSE:CMTG – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.
Profitability
This table compares KKR Real Estate Finance Trust and Claros Mortgage Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KKR Real Estate Finance Trust | -58.12% | -1.45% | -0.25% |
| Claros Mortgage Trust | -371.29% | -20.86% | -7.06% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for KKR Real Estate Finance Trust and Claros Mortgage Trust, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KKR Real Estate Finance Trust | 2 | 5 | 1 | 1 | 2.11 |
| Claros Mortgage Trust | 3 | 1 | 0 | 0 | 1.25 |
KKR Real Estate Finance Trust currently has a consensus price target of $8.67, indicating a potential upside of 54.49%. Claros Mortgage Trust has a consensus price target of $2.08, indicating a potential upside of 23.64%. Given KKR Real Estate Finance Trust’s stronger consensus rating and higher probable upside, analysts clearly believe KKR Real Estate Finance Trust is more favorable than Claros Mortgage Trust.
Institutional & Insider Ownership
70.2% of KKR Real Estate Finance Trust shares are held by institutional investors. Comparatively, 89.5% of Claros Mortgage Trust shares are held by institutional investors. 2.1% of KKR Real Estate Finance Trust shares are held by company insiders. Comparatively, 2.6% of Claros Mortgage Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares KKR Real Estate Finance Trust and Claros Mortgage Trust”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KKR Real Estate Finance Trust | $435.60 million | 0.74 | -$47.05 million | ($3.51) | -1.60 |
| Claros Mortgage Trust | $187.83 million | 1.27 | -$489.07 million | ($3.66) | -0.46 |
KKR Real Estate Finance Trust has higher revenue and earnings than Claros Mortgage Trust. KKR Real Estate Finance Trust is trading at a lower price-to-earnings ratio than Claros Mortgage Trust, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
KKR Real Estate Finance Trust has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, Claros Mortgage Trust has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.
Summary
KKR Real Estate Finance Trust beats Claros Mortgage Trust on 10 of the 15 factors compared between the two stocks.
About KKR Real Estate Finance Trust
KKR Real Estate Finance Trust Inc., a mortgage real estate investment trust, focuses primarily on originating and acquiring transitional senior loans secured by commercial real estate (CRE) assets. It engages in the origination and purchase of credit investments related to CRE, including leveraged and unleveraged commercial real estate loans. The company has elected to be taxed as a real estate investment trust and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. KKR Real Estate Finance Trust Inc. was incorporated in 2014 and is headquartered in New York, New York.
About Claros Mortgage Trust
Claros Mortgage Trust, Inc. operates as a real estate investment trust. It focuses on originating senior and subordinate loans on transitional commercial real estate assets in the United States. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was incorporated in 2015 and is headquartered in New York, New York.
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