ACRES Commercial Realty (NYSE:ACR) versus KKR Real Estate Finance Trust (NYSE:KREF) Head-To-Head Contrast

KKR Real Estate Finance Trust (NYSE:KREF) and ACRES Commercial Realty (NYSE:ACR) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Institutional and Insider Ownership

70.2% of KKR Real Estate Finance Trust shares are held by institutional investors. Comparatively, 40.0% of ACRES Commercial Realty shares are held by institutional investors. 1.9% of KKR Real Estate Finance Trust shares are held by company insiders. Comparatively, 3.9% of ACRES Commercial Realty shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares KKR Real Estate Finance Trust and ACRES Commercial Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KKR Real Estate Finance Trust	-10.80%	-1.13%	-0.22%
ACRES Commercial Realty	35.16%	4.74%	1.16%

Analyst Ratings

This is a summary of current ratings for KKR Real Estate Finance Trust and ACRES Commercial Realty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KKR Real Estate Finance Trust	2	3	2	0	2.00
ACRES Commercial Realty	0	3	2	0	2.40

KKR Real Estate Finance Trust currently has a consensus price target of $10.00, suggesting a potential upside of 46.52%. ACRES Commercial Realty has a consensus price target of $24.50, suggesting a potential upside of 31.79%. Given KKR Real Estate Finance Trust’s higher possible upside, equities research analysts clearly believe KKR Real Estate Finance Trust is more favorable than ACRES Commercial Realty.

Risk & Volatility

KKR Real Estate Finance Trust has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, ACRES Commercial Realty has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Earnings and Valuation

This table compares KKR Real Estate Finance Trust and ACRES Commercial Realty”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KKR Real Estate Finance Trust	$435.60 million	1.01	-$47.05 million	($1.05)	-6.50
ACRES Commercial Realty	$101.99 million	1.33	$29.27 million	$0.96	19.36

ACRES Commercial Realty has lower revenue, but higher earnings than KKR Real Estate Finance Trust. KKR Real Estate Finance Trust is trading at a lower price-to-earnings ratio than ACRES Commercial Realty, indicating that it is currently the more affordable of the two stocks.

Summary

ACRES Commercial Realty beats KKR Real Estate Finance Trust on 10 of the 13 factors compared between the two stocks.

About KKR Real Estate Finance Trust

KKR Real Estate Finance Trust Inc., a mortgage real estate investment trust, focuses primarily on originating and acquiring transitional senior loans secured by commercial real estate (CRE) assets. It engages in the origination and purchase of credit investments related to CRE, including leveraged and unleveraged commercial real estate loans. The company has elected to be taxed as a real estate investment trust and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. KKR Real Estate Finance Trust Inc. was incorporated in 2014 and is headquartered in New York, New York.

About ACRES Commercial Realty

ACRES Commercial Realty Corp., a real estate investment trust (REIT), focuses on the origination, holding, and management of commercial real estate mortgage loans and equity investments in commercial real estate property in the United States. It invests in commercial real estate-related assets, including floating-rate first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine financing, preferred equity investments, and commercial mortgage-backed securities. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Exantas Capital Corp. and changed its name to ACRES Commercial Realty Corp. in February 2021. ACRES Commercial Realty Corp. was incorporated in 2005 and is based in Uniondale, New York.