KKR Real Estate Finance Trust (KREF) vs TPG RE Finance Trust, Inc. (TRTX)

KKR Real Estate Finance Trust and TPG RE Finance Trust, Inc. are both Reit Mortgage companies. TPG RE Finance Trust, Inc. is the larger, with a market value of $508.2M against $369.4M — 1.4× the size. KKR Real Estate Finance Trust has negative trailing earnings, so its P/E is not meaningful; TPG RE Finance Trust, Inc. trades at 12.1×. TPG RE Finance Trust, Inc. grew revenue faster over the last twelve months: −2.64% against −24.3%. TPG RE Finance Trust, Inc. has the higher net margin (29.9% vs −173.6%) and the higher return on invested capital (1.00% vs −2.26%). Both pay a dividend; TPG RE Finance Trust, Inc. yields more (17.6% vs 11.8%). Across the 19 metrics below, TPG RE Finance Trust, Inc. leads on 15 and KKR Real Estate Finance Trust on 4.

Valuation

Metric KREF TRTX Reit Mortgage median
P/E n/m 12.15 7.80
P/S 3.32 3.50 1.90
P/B 0.40 0.48 0.61
Price to free cash flow 16.18 6.10 5.90
EV/EBITDA n/m 47.76 28.40
EV/Sales 38.70 26.90 16.02
Earnings yield (51.65%) 8.23% 7.68%
Free cash flow yield 6.18% 16.40% 11.60%

Profitability

Metric KREF TRTX Reit Mortgage median
Gross margin 100.00% 100.00% 100.00%
Operating margin (157.87%) 48.82% 35.40%
Net margin (173.57%) 29.93% 11.85%
Free cash flow margin 20.50% 57.48% 26.68%
Return on equity (18.18%) 4.04% 4.81%
Return on assets (3.12%) 0.99% 0.62%
Return on invested capital (2.26%) 1.00% 1.22%

Growth

Metric KREF TRTX Reit Mortgage median
Revenue growth (TTM) (24.25%) (2.64%) 4.70%
EPS growth (last fiscal year) (652.63%) (24.00%) —
Revenue growth, 5-year CAGR (1.15%) (3.76%) 14.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric KREF TRTX Reit Mortgage median
Debt to equity 4.36 3.30 3.30
Current ratio 0.00 200.26 1.00
Net debt to EBITDA (90.61) 38.25 18.31

Dividend

Metric KREF TRTX Reit Mortgage median
Dividend yield 11.79% 17.57% 13.05%
Payout ratio 2.87 0.99 1.24

Size

Metric KREF TRTX Reit Mortgage median
Market cap 369.41m 508.21m 517.48m

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