INVESCO MORTGAGE CAPITAL INC (IVR) vs KKR Real Estate Finance Trust (KREF)

INVESCO MORTGAGE CAPITAL INC and KKR Real Estate Finance Trust are both Reit Mortgage companies. INVESCO MORTGAGE CAPITAL INC is the larger, with a market value of $607.1M against $352.3M — 1.7× the size. KKR Real Estate Finance Trust has negative trailing earnings, so its P/E is not meaningful; INVESCO MORTGAGE CAPITAL INC trades at 3.7×. INVESCO MORTGAGE CAPITAL INC grew revenue faster over the last twelve months: 7.29% against −24.3%. INVESCO MORTGAGE CAPITAL INC has the higher net margin (33.9% vs −173.6%) and the higher return on invested capital (0.69% vs −2.26%). Both pay a dividend; INVESCO MORTGAGE CAPITAL INC yields more (26.0% vs 12.1%). Across the 20 metrics below, INVESCO MORTGAGE CAPITAL INC leads on 16 and KKR Real Estate Finance Trust on 4.

Valuation

Metric IVR KREF Reit Mortgage median
P/E 3.74 n/m 7.10
P/S 1.66 3.03 1.77
P/B 0.63 0.37 0.55
Price to free cash flow 3.16 14.78 5.36
EV/EBITDA 99.20 n/m 28.29
EV/Sales 22.90 38.41 15.90
Earnings yield 26.76% (56.55%) 8.10%
Free cash flow yield 31.63% 6.77% 13.00%

Profitability

Metric IVR KREF Reit Mortgage median
Gross margin 30.40% 100.00% 100.00%
Operating margin 24.27% (157.87%) 35.40%
Net margin 33.93% (173.57%) 11.85%
Free cash flow margin 52.56% 20.50% 26.68%
Return on equity 15.68% (18.18%) 4.81%
Return on assets 1.70% (3.12%) 0.62%
Return on invested capital 0.69% (2.26%) 1.22%

Growth

Metric IVR KREF Reit Mortgage median
Revenue growth (TTM) 7.29% (24.25%) 4.70%
EPS growth (last fiscal year) 103.08% (652.63%) 45.25%
Revenue growth, 5-year CAGR 1.06% (1.15%) 14.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric IVR KREF Reit Mortgage median
Debt to equity 6.27 4.36 3.30
Current ratio 0.04 0.00 1.00
Net debt to EBITDA 105.08 (90.61) 18.31

Dividend

Metric IVR KREF Reit Mortgage median
Dividend yield 26.04% 12.07% 17.34%
Payout ratio 0.97 — 1.28

Size

Metric IVR KREF Reit Mortgage median
Market cap 607.09m 352.29m 479.53m

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