Analyzing Keppel REIT (OTCMKTS:KREVF) & Ellington Financial (NYSE:EFC)

Keppel REIT (OTCMKTS:KREVFGet Rating) and Ellington Financial (NYSE:EFCGet Rating) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Profitability

This table compares Keppel REIT and Ellington Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Keppel REIT N/A N/A N/A
Ellington Financial -40.37% 9.99% 1.76%

Valuation and Earnings

This table compares Keppel REIT and Ellington Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Keppel REIT $161.20 million N/A $179.48 million N/A N/A
Ellington Financial $131.48 million 6.35 $135.25 million ($1.19) -11.60

Keppel REIT has higher revenue and earnings than Ellington Financial.

Institutional and Insider Ownership

54.4% of Ellington Financial shares are owned by institutional investors. 6.4% of Ellington Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Keppel REIT has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, Ellington Financial has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Keppel REIT and Ellington Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Keppel REIT 1 0 1 0 2.00
Ellington Financial 0 2 3 0 2.60

Ellington Financial has a consensus price target of $15.38, suggesting a potential upside of 11.33%. Given Ellington Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Ellington Financial is more favorable than Keppel REIT.

Summary

Ellington Financial beats Keppel REIT on 8 of the 11 factors compared between the two stocks.

About Keppel REIT

(Get Rating)

Listed by way of an introduction on 28 April 2006, Keppel REIT is one of Asia's leading REITs with a portfolio of Grade A commercial assets in key business districts pan-Asia. Keppel REIT's objective is to generate stable income and long-term growth for Unitholders by owning and investing in a portfolio of quality income-producing commercial real estate and real estate-related assets in Singapore and pan-Asia. The REIT has assets under management of over $8 billion in Singapore, key Australian cities of Sydney, Melbourne, Brisbane and Perth, as well as Seoul, South Korea. Keppel REIT is sponsored by Keppel Land Limited, one of Asia's leading property companies. It is managed by Keppel REIT Management Limited, a wholly-owned subsidiary of Keppel Capital Holdings Pte Ltd (Keppel Capital). Keppel Capital is a premier asset manager in Asia with a diversified portfolio in real estate, infrastructure and data centre properties in key global markets.

About Ellington Financial

(Get Rating)

Ellington Financial Inc., through its subsidiary, Ellington Financial Operating Partnership LLC, acquires and manages mortgage-related, consumer-related, corporate-related, and other financial assets in the United States. The company acquires and manages residential mortgage-backed securities (RMBS) backed by prime jumbo, Alt-A, manufactured housing, and subprime residential mortgage loans; RMBS for which the principal and interest payments are guaranteed by the U.S. government agency or the U.S. government-sponsored entity; residential mortgage loans; commercial mortgage-backed securities; and commercial mortgage loans and other commercial real estate debt. It also provides collateralized loan obligations; mortgage-related and non-mortgage-related derivatives; corporate debt and equity securities; corporate loans; and other strategic investments. In addition, the company offers consumer loans and asset-backed securities backed by consumer and commercial assets. Ellington Financial LLC was incorporated in 2007 and is based in Old Greenwich, Connecticut.

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