KKR Real Estate Finance Trust (NYSE:KREF – Get Free Report ) and Vornado Realty Trust (NYSE:VNO – Get Free Report ) are both finance companies, but which business is better? We compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional holdings and profitability.
Profitability
This table compares the net profit margins, return on equity, and return on assets of KKR Real Estate Finance Trust and Vornado Realty Trust.
Net profit margin Return on equity Return on assets KKR Real Estate Finance Trust -1.39% 10.38% 1.97% Vornado Realty Trust 5.07% 3.02% 0.87%
Analyst Recommendations
Here's a summary of recent valuations and target prices for KKR Real Estate Finance Trust and Vornado Realty Trust as reported by MarketBeat.com.
Sell Rating Hold Rating Buy Rating Strong Buy Rating Rating Score KKR Real Estate Finance Trust 0 2 4 0 2.67 Vornado Realty Trust 5 6 0 0 1.55
KKR Real Estate Finance Trust currently has a consensus price target of $11.29, indicating an upside potential of 16.89%, while Vornado Realty Trust has a consensus price target of $24.27, indicating a downside potential of 15.92%. With KKR Real Estate Finance Trust's higher consensus rating and higher upside potential, stock analysts clearly consider KKR Real Estate Finance Trust to be a better bet than Vornado Realty Trust.
Dividends
KKR Real Estate Finance Trust pays a dividend of $1.00 per share per year and has a dividend yield of 10.4%. Vornado Realty Trust pays a dividend of $0.30 per share per year and has a dividend yield of 1.0%. KKR Real Estate Finance Trust pays out -217.4% of its profits as dividends. Vornado Realty Trust pays out 200.0% of its profits as dividends, suggesting that there may not be enough profits to cover dividend payments in the future. KKR Real Estate Finance Trust is clearly the better dividend stock given its higher yield and lower dividend payout ratio.
Risk and Volatility
KKR Real Estate Finance Trust has a beta of 0.99, meaning its share price is 1% less volatile than the S&P 500. In comparison, Vornado Realty Trust has a beta of 1.64, meaning its share price is 64% more volatile than the S&P 500.
Ratings and Revenue
This table compares revenue, earnings per share (EPS), and valuation for KKR Real Estate Finance Trust and Vornado Realty Trust.
Total Revenue Price to Sales Ratio Net Income Earnings Per Share Price to Earnings Ratio KKR Real Estate Finance Trust $640.41 million 1.05 -$30.85 million ($0.46) -21.00 Vornado Realty Trust $1.81 billion 3.04 $105.49 million 0.15 192.48
Vornado Realty Trust has higher revenues and earnings than KKR Real Estate Finance Trust. KKR Real Estate Finance Trust trades at a lower price-to-earnings multiple than Vornado Realty Trust, suggesting that KKR Real Estate Finance Trust is currently the more affordable of the two stocks.
Institutional and insider ownership
70.2% of KKR Real Estate Finance Trust's shares are owned by institutional investors. In comparison, 90.0% of Vornado Realty Trust's shares are owned by institutional investors. 1.2% of KKR Real Estate Finance Trust's shares are owned by insiders. In comparison, 8.1% of Vornado Realty Trust's shares are owned by insiders. Strong institutional ownership indicates that large asset managers, endowments, and hedge funds believe that a stock will outperform the market in the long term.
summary
Vornado Realty Trust outperforms KKR Real Estate Finance Trust on eight of the 15 factors we compared the two stocks on.
About KKR Real Estate Finance Trust
(Get your free report)
KKR Real Estate Finance Trust Inc. is a mortgage-backed real estate investment trust primarily engaged in originating and acquiring transitional senior loans secured by commercial real estate (CRE) assets. The firm originates and purchases CRE related credit investments, including leveraged and unleveraged commercial real estate loans. The firm has elected to be taxed as a real estate investment trust and is not subject to federal income tax if it distributes at least 90% of its taxable income to shareholders. KKR Real Estate Finance Trust Inc. was incorporated in 2014 and is headquartered in New York, NY.
About Vornado Realty Trust
(Get your free report)
Vornado is a fully integrated real estate investment trust (REIT) with a portfolio of premier office and retail assets in New York City and developers in the new PENN DISTRICT. While concentrated in New York, Vornado also owns premier assets in both Chicago and San Francisco. Vornado is a real estate industry leader in sustainability, with over 27 million square feet of LEED certified buildings and over 23 million square feet of LEED Gold or Platinum buildings.
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