ACRES Commercial Realty (NYSE:ACR – Get Free Report) and KKR Real Estate Finance Trust (NYSE:KREF – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.
Institutional and Insider Ownership
40.0% of ACRES Commercial Realty shares are owned by institutional investors. Comparatively, 70.2% of KKR Real Estate Finance Trust shares are owned by institutional investors. 4.6% of ACRES Commercial Realty shares are owned by insiders. Comparatively, 2.1% of KKR Real Estate Finance Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for ACRES Commercial Realty and KKR Real Estate Finance Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ACRES Commercial Realty | 1 | 1 | 2 | 0 | 2.25 |
| KKR Real Estate Finance Trust | 2 | 5 | 1 | 1 | 2.11 |
ACRES Commercial Realty presently has a consensus price target of $17.00, indicating a potential upside of 40.72%. KKR Real Estate Finance Trust has a consensus price target of $8.67, indicating a potential upside of 53.26%. Given KKR Real Estate Finance Trust’s higher possible upside, analysts plainly believe KKR Real Estate Finance Trust is more favorable than ACRES Commercial Realty.
Profitability
This table compares ACRES Commercial Realty and KKR Real Estate Finance Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ACRES Commercial Realty | -56.93% | -4.09% | -0.96% |
| KKR Real Estate Finance Trust | -58.12% | -1.45% | -0.25% |
Risk & Volatility
ACRES Commercial Realty has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, KKR Real Estate Finance Trust has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.
Earnings and Valuation
This table compares ACRES Commercial Realty and KKR Real Estate Finance Trust”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ACRES Commercial Realty | $79.95 million | 1.08 | $21.32 million | ($7.62) | -1.59 |
| KKR Real Estate Finance Trust | $90.12 million | 3.60 | -$47.05 million | ($3.51) | -1.61 |
ACRES Commercial Realty has higher earnings, but lower revenue 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
KKR Real Estate Finance Trust beats ACRES Commercial Realty on 8 of the 15 factors compared between the two stocks.
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.
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.
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