Arbor Realty Trust (ABR) vs KKR Real Estate Finance Trust (KREF)

Arbor Realty Trust and KKR Real Estate Finance Trust are both Reit Mortgage companies. Arbor Realty Trust is the larger, with a market value of $522.4M against $352.3M — 1.5× the size. KKR Real Estate Finance Trust has negative trailing earnings, so its P/E is not meaningful; Arbor Realty Trust trades at 38.6×. Arbor Realty Trust grew revenue faster over the last twelve months: −7.02% against −24.3%. Arbor Realty Trust has the higher net margin (1.36% vs −173.6%) and the higher return on invested capital (1.08% vs −2.26%). Both pay a dividend; Arbor Realty Trust yields more (34.8% vs 12.1%). Across the 21 metrics below, Arbor Realty Trust leads on 18 and KKR Real Estate Finance Trust on 3.

Valuation

Metric ABR KREF Reit Mortgage median
P/E 38.57 n/m 7.10
P/S 0.43 3.03 1.77
P/B 0.23 0.37 0.55
Price to free cash flow 2.00 14.78 5.36
EV/EBITDA 21.49 n/m 28.29
EV/Sales 4.37 38.41 15.90
Earnings yield 2.59% (56.55%) 8.10%
Free cash flow yield 49.91% 6.77% 13.00%

Profitability

Metric ABR KREF Reit Mortgage median
Gross margin 21.47% 100.00% 100.00%
Operating margin 10.88% (157.87%) 35.40%
Net margin 1.36% (173.57%) 11.85%
Free cash flow margin 21.48% 20.50% 26.68%
Return on equity 0.69% (18.18%) 4.81%
Return on assets 0.12% (3.12%) 0.62%
Return on invested capital 1.08% (2.26%) 1.22%

Growth

Metric ABR KREF Reit Mortgage median
Revenue growth (TTM) (7.02%) (24.25%) 4.70%
EPS growth (last fiscal year) (52.54%) (652.63%) 45.25%
Revenue growth, 5-year CAGR 14.96% (1.15%) 14.60%
Net income growth, 5-year CAGR (8.05%) 0.00% 0.00%

Health

Metric ABR KREF Reit Mortgage median
Debt to equity 1.82 4.36 3.30
Current ratio 478.85 0.00 1.00
Net debt to EBITDA 16.23 (90.61) 18.31

Dividend

Metric ABR KREF Reit Mortgage median
Dividend yield 34.81% 12.07% 17.34%
Payout ratio 13.43 — 1.28

Size

Metric ABR KREF Reit Mortgage median
Market cap 522.37m 352.29m 479.53m

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