KKR Real Estate Finance Trust (NYSE:KREF – Get Free Report) and Adamas Trust (NASDAQ:ADAM – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.
Analyst Ratings
This is a summary of current ratings for KKR Real Estate Finance Trust and Adamas Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KKR Real Estate Finance Trust | 2 | 5 | 1 | 1 | 2.11 |
| Adamas Trust | 0 | 4 | 1 | 1 | 2.50 |
KKR Real Estate Finance Trust presently has a consensus price target of $8.92, suggesting a potential upside of 24.80%. Adamas Trust has a consensus price target of $9.50, suggesting a potential upside of 4.51%. Given KKR Real Estate Finance Trust’s higher possible upside, research analysts clearly believe KKR Real Estate Finance Trust is more favorable than Adamas Trust.
Volatility & Risk
Profitability
This table compares KKR Real Estate Finance Trust and Adamas Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KKR Real Estate Finance Trust | -47.33% | -1.53% | -0.27% |
| Adamas Trust | 29.82% | 14.72% | 1.04% |
Dividends
KKR Real Estate Finance Trust pays an annual dividend of $0.40 per share and has a dividend yield of 5.6%. Adamas Trust pays an annual dividend of $1.20 per share and has a dividend yield of 13.2%. KKR Real Estate Finance Trust pays out -12.2% of its earnings in the form of a dividend. Adamas Trust pays out 71.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Earnings & Valuation
This table compares KKR Real Estate Finance Trust and Adamas Trust”s gross 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 | 0.96 | -$47.05 million | ($3.28) | -2.18 |
| Adamas Trust | $407.04 million | 2.01 | $149.05 million | $1.68 | 5.41 |
Adamas Trust 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 Adamas Trust, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
70.2% of KKR Real Estate Finance Trust shares are owned by institutional investors. Comparatively, 54.9% of Adamas Trust shares are owned by institutional investors. 2.1% of KKR Real Estate Finance Trust shares are owned by company insiders. Comparatively, 2.0% of Adamas Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Adamas Trust beats KKR Real Estate Finance Trust on 10 of the 15 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 Adamas Trust
New York Mortgage Trust, Inc. acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States. Its targeted investments include residential loans, second mortgages, and business purpose loans; structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties, as well as joint venture equity investments in multi-family properties; non-agency residential mortgage-backed securities (RMBS); agency RMBS; commercial mortgage-backed securities (CMBS); and other mortgage, residential housing, and credit-related assets. 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 incorporated in 2003 and is headquartered in New York, New York.
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