KKR Real Estate Finance Trust (KREF) vs Ready Capital Corp (RC)

KKR Real Estate Finance Trust and Ready Capital Corp are both Reit Mortgage companies. KKR Real Estate Finance Trust is the larger, with a market value of $369.4M against $229.6M — 1.6× the size. KKR Real Estate Finance Trust grew revenue faster over the last twelve months: −24.3% against −43.0%. Ready Capital Corp has the higher net margin (−134.1% vs −173.6%) and the higher return on invested capital (6.29% vs −2.26%). Both pay a dividend; Ready Capital Corp yields more (16.7% vs 11.8%). Across the 19 metrics below, Ready Capital Corp leads on 14 and KKR Real Estate Finance Trust on 5.

Valuation

Metric KREF RC Reit Mortgage median
P/E n/m n/m 7.80
P/S 3.32 0.53 1.90
P/B 0.40 0.18 0.61
Price to free cash flow 16.18 0.18 5.90
EV/EBITDA n/m 6.48 28.40
EV/Sales 38.70 7.42 16.02
Earnings yield (51.65%) (257.04%) 7.68%
Free cash flow yield 6.18% 560.11% 11.60%

Profitability

Metric KREF RC Reit Mortgage median
Gross margin 100.00% 100.00% 100.00%
Operating margin (157.87%) 101.42% 35.40%
Net margin (173.57%) (134.14%) 11.85%
Free cash flow margin 20.50% 297.03% 26.68%
Return on equity (18.18%) (37.06%) 4.81%
Return on assets (3.12%) (7.25%) 0.62%
Return on invested capital (2.26%) 6.29% 1.22%

Growth

Metric KREF RC Reit Mortgage median
Revenue growth (TTM) (24.25%) (43.02%) 4.70%
EPS growth (last fiscal year) (652.63%) 45.25% —
Revenue growth, 5-year CAGR (1.15%) 17.09% 14.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric KREF RC Reit Mortgage median
Debt to equity 4.36 2.29 3.30
Current ratio 0.00 1.91 1.00
Net debt to EBITDA (90.61) 6.30 18.31

Dividend

Metric KREF RC Reit Mortgage median
Dividend yield 11.79% 16.73% 13.05%
Payout ratio 2.87 0.58 1.24

Size

Metric KREF RC Reit Mortgage median
Market cap 369.41m 229.62m 517.48m

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