KKR Real Estate Finance Trust (KREF) vs NexPoint Real Estate Finance, Inc. (NREF)

KKR Real Estate Finance Trust and NexPoint Real Estate Finance, Inc. are both Reit Mortgage companies. KKR Real Estate Finance Trust is the larger, with a market value of $369.4M against $297.0M — 1.2× the size. KKR Real Estate Finance Trust has negative trailing earnings, so its P/E is not meaningful; NexPoint Real Estate Finance, Inc. trades at 6.7×. NexPoint Real Estate Finance, Inc. grew revenue faster over the last twelve months: −5.70% against −24.3%. NexPoint Real Estate Finance, Inc. has the higher net margin (65.6% vs −173.6%) and the higher return on invested capital (1.31% vs −2.26%). Both pay a dividend; NexPoint Real Estate Finance, Inc. yields more (19.5% vs 11.8%). Across the 20 metrics below, NexPoint Real Estate Finance, Inc. leads on 15 and KKR Real Estate Finance Trust on 5.

Valuation

Metric KREF NREF Reit Mortgage median
P/E n/m 6.65 7.80
P/S 3.32 3.13 1.90
P/B 0.40 0.78 0.61
Price to free cash flow 16.18 63.54 5.90
EV/EBITDA n/m 30.94 28.40
EV/Sales 38.70 8.81 16.02
Earnings yield (51.65%) 15.03% 7.68%
Free cash flow yield 6.18% 1.57% 11.60%

Profitability

Metric KREF NREF Reit Mortgage median
Gross margin 100.00% 100.00% 100.00%
Operating margin (157.87%) 20.29% 35.40%
Net margin (173.57%) 65.64% 11.85%
Free cash flow margin 20.50% 4.92% 26.68%
Return on equity (18.18%) 17.13% 4.81%
Return on assets (3.12%) 1.16% 0.62%
Return on invested capital (2.26%) 1.31% 1.22%

Growth

Metric KREF NREF Reit Mortgage median
Revenue growth (TTM) (24.25%) (5.70%) 4.70%
EPS growth (last fiscal year) (652.63%) 114.86% —
Revenue growth, 5-year CAGR (1.15%) 18.20% 14.60%
Net income growth, 5-year CAGR 0.00% 46.80% 0.00%

Health

Metric KREF NREF Reit Mortgage median
Debt to equity 4.36 1.79 3.30
Current ratio 0.00 163.94 1.00
Net debt to EBITDA (90.61) 28.84 18.31

Dividend

Metric KREF NREF Reit Mortgage median
Dividend yield 11.79% 19.50% 13.05%
Payout ratio 2.87 1.24 1.24

Size

Metric KREF NREF Reit Mortgage median
Market cap 369.41m 297.04m 517.48m

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