KKR Real Estate Finance Trust (KREF) vs Redwood Trust, Inc. (RWT)

KKR Real Estate Finance Trust and Redwood Trust, Inc. are both Reit Mortgage companies. Redwood Trust, Inc. is the larger, with a market value of $468.5M against $369.4M — 1.3× the size. Redwood Trust, Inc. grew revenue faster over the last twelve months: 27.7% against −24.3%. Redwood Trust, Inc. has the higher net margin (−0.09% vs −173.6%) and the higher return on invested capital (−0.14% vs −2.26%). Both pay a dividend; KKR Real Estate Finance Trust yields more (11.8% vs 10.9%). Across the 19 metrics below, Redwood Trust, Inc. leads on 13 and KKR Real Estate Finance Trust on 6.

Valuation

Metric KREF RWT Reit Mortgage median
P/E n/m n/m 7.80
P/S 3.32 0.34 1.90
P/B 0.40 0.54 0.61
Price to free cash flow 16.18 n/m 5.90
EV/EBITDA n/m n/m 28.40
EV/Sales 38.70 21.12 16.02
Earnings yield (51.65%) (1.08%) 7.68%
Free cash flow yield 6.18% (3,029.70%) 11.60%

Profitability

Metric KREF RWT Reit Mortgage median
Gross margin 100.00% 7.87% 100.00%
Operating margin (157.87%) (4.47%) 35.40%
Net margin (173.57%) (0.09%) 11.85%
Free cash flow margin 20.50% (1,043.65%) 26.68%
Return on equity (18.18%) (0.14%) 4.81%
Return on assets (3.12%) (0.01%) 0.62%
Return on invested capital (2.26%) (0.14%) 1.22%

Growth

Metric KREF RWT Reit Mortgage median
Revenue growth (TTM) (24.25%) 27.74% 4.70%
EPS growth (last fiscal year) (652.63%) (290.62%) —
Revenue growth, 5-year CAGR (1.15%) 15.64% 14.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric KREF RWT Reit Mortgage median
Debt to equity 4.36 29.42 3.30
Current ratio 0.00 67.49 1.00
Net debt to EBITDA (90.61) (447.55) 18.31

Dividend

Metric KREF RWT Reit Mortgage median
Dividend yield 11.79% 10.94% 13.05%
Payout ratio 2.87 2.31 1.24

Size

Metric KREF RWT Reit Mortgage median
Market cap 369.41m 468.53m 517.48m

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