KKR Real Estate Finance Trust (NYSE:KREF) and ACRES Commercial Realty (NYSE:ACR) Head to Head Survey

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

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	-58.12%	-1.45%	-0.25%
ACRES Commercial Realty	-56.93%	-3.18%	-0.78%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for KKR Real Estate Finance Trust and ACRES Commercial Realty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KKR Real Estate Finance Trust	2	5	1	1	2.11
ACRES Commercial Realty	1	1	2	0	2.25

KKR Real Estate Finance Trust currently has a consensus target price of $8.67, indicating a potential upside of 61.45%. ACRES Commercial Realty has a consensus target price of $17.00, indicating a potential upside of 73.91%. Given ACRES Commercial Realty’s stronger consensus rating and higher probable upside, analysts clearly believe ACRES Commercial Realty is more favorable than KKR Real Estate Finance Trust.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KKR Real Estate Finance Trust	$435.60 million	0.71	-$47.05 million	($3.51)	-1.53
ACRES Commercial Realty	$79.95 million	0.87	$21.32 million	($7.62)	-1.28

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.

Institutional & 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. 2.1% of KKR Real Estate Finance Trust shares are held by insiders. Comparatively, 4.6% of ACRES Commercial Realty shares are held by 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.

Volatility & Risk

KKR Real Estate Finance Trust has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, ACRES Commercial Realty has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Summary

ACRES Commercial Realty beats KKR Real Estate Finance Trust on 9 of the 15 factors compared between the two stocks.

About KKR Real Estate Finance Trust

KKR Real Estate Finance Trust Inc. is a real estate investment trust that originates and acquires commercial real estate loans. Its investments are primarily senior loans secured by commercial properties, with additional exposure to other forms of commercial real estate debt and select related investments. The company focuses on properties in the United States and is externally managed by an affiliate of KKR, drawing on KKR’s real estate and credit investment platform. KKR Real Estate Finance Trust was established in 2014 and became publicly traded in 2017.

About ACRES Commercial Realty

ACRES Commercial Realty Corp. (NYSE: ACR) is a real estate investment trust focused on originating and investing in commercial real estate mortgage loans and related investments. The company primarily provides financing for commercial properties, including transitional assets that may require renovation, repositioning, or other improvements before reaching stabilized operations. Its investment activities are centered on loans secured by properties such as multifamily housing, office buildings, retail centers, industrial facilities, and lodging assets.