Head to Head Comparison: Franklin Street Properties (NYSE:FSP) & KKR Real Estate Finance Trust (NYSE:KREF)
Franklin Street Properties (NYSE:FSP – Get Rating) and KKR Real Estate Finance Trust (NYSE:KREF – Get Rating) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, valuation, earnings, profitability and institutional ownership.
Volatility and Risk
Comparatively, KKR Real Estate Finance Trust has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500
dividends
Franklin Street Properties pays an annual dividend of $0.04 per share and has a dividend yield of 1.2%. KKR Real Estate Finance Trust pays an annual dividend of $1.72 per share and has a dividend yield of 8.7%. Franklin Street Properties pays out 6.1% of its earnings in the form of a dividend. KKR Real Estate Finance Trust pays out 90.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Analyst Recommendations
This is a breakdown of current ratings for Franklin Street Properties and KKR Real Estate Finance Trust, as provided by MarketBeat.
| sell ratings | hold ratings | Buy rating | Strong Buy Ratings | rating score | |
| Franklin Street Properties | 0 | 0 | 0 | 0 | N / A |
| KKR Real Estate Finance Trust | 0 | 0 | 3 | 0 | 3.00 |
KKR Real Estate Finance Trust has a consensus target price of $23.33, indicating a potential upside of 18.56%. Given KKR Real Estate Finance Trust’s higher possible upside, analysts plainly believe KKR Real Estate Finance Trust is more favorable than Franklin Street Properties.
profitability
This table compares Franklin Street Properties and KKR Real Estate Finance Trust’s net margins, return on equity and return on assets.
| net margins | return on equity | return on assets | |
| Franklin Street Properties | 39.25% | 9.11% | 5.04% |
| KKR Real Estate Finance Trust | 48.10% | 7.74% | 1.68% |
Insiders and Institutional Ownership
83.2% of Franklin Street Properties shares are held by institutional investors. Comparatively, 78.7% of KKR Real Estate Finance Trust shares are held by institutional investors. 4.7% of Franklin Street Properties shares are held by insiders. Comparatively, 1.3% of KKR Real Estate Finance Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Franklin Street Properties and KKR Real Estate Finance Trust’s top-line revenue, earnings per share and valuation.
| Gross revenue | Price/sales ratio | Net Income | Earnings Per Share | Price/earnings ratio | |
| Franklin Street Properties | $209.36 million | 1.59 | $92.72 million | $0.66 | 4.88 |
| KKR Real Estate Finance Trust | $165.51 million | 8.23 | $137.18 million | $1.90 | 10.36 |
KKR Real Estate Finance Trust has lower revenue but higher earnings than Franklin Street Properties. Franklin Street Properties is trading at a lower price-to-earnings ratio than KKR Real Estate Finance Trust, indicating that it is currently the more affordable of the two stocks.
Summary
KKR Real Estate Finance Trust beats Franklin Street Properties on 8 of the 15 factors compared between the two stocks.
About Franklin Street Properties
(Get Rating)
Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the US Sunbelt and Mountain West, as well as select opportunistic markets. FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes.
About KKR Real Estate Finance Trust
(Get Rating)
KKR Real Estate Finance Trust Inc., a mortgage real estate investment trust, focuses primarily on originating and acquiring 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 mortgage loans, and commercial mortgage-backed securities. 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.
Receive News & Ratings for Franklin Street Properties Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Franklin Street Properties and related companies with MarketBeat.com’s FREE daily email newsletter.