ARI
Apollo Commercial Real Estate Finance, Inc.
REIT - Mortgage
Market Cap$1.45B
5Y Perf.+33.0%
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Stock Comparison
ARI vs KREF
Revenue, margins, valuation, and 5-year total return — side by side.
KREF
KKR Real Estate Finance Trust Inc.
REIT - Mortgage
Market Cap$422M
5Y Perf.-59.4%
ARI vs KREF — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ARI | KREF |
|---|---|---|
| Industry | REIT - Mortgage | REIT - Mortgage |
| Market Cap | $1.45B | $422M |
| Revenue (TTM) | $709M | $442M |
| Net Income (TTM) | $127M | $-104M |
| Gross Margin | 66.2% | 87.1% |
| Operating Margin | 56.0% | 48.0% |
| Forward P/E | 12.7x | — |
| Total Debt | $7.92B | $4.69B |
| Cash & Equiv. | $140M | $85M |
ARI vs KREF — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
ARI
KREF
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Apollo Commercial R… (ARI) | 100 | 133.0 | +33.0% |
| KKR Real Estate Fin… (KREF) | 100 | 40.6 | -59.4% |
Price return only. Dividends and distributions are not included.
Quick Verdict: ARI vs KREF
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: ARI leads in 5 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. KKR Real Estate Finance Trust Inc. is the stronger pick specifically for valuation and capital efficiency and dividend income and shareholder returns. As sector peers, any of these can serve as alternatives in the same allocation.
ARI
Apollo Commercial Real Estate Finance, Inc.
The Real Estate Income Play
ARI carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 0 yrs, beta 0.60, yield 9.3%
- Rev growth 1.3%, EPS growth 183.5%, 3Y rev CAGR 3.5%
- 62.9% 10Y total return vs KREF's -9.2%
Best for: income & stability and growth exposure
KREF
KKR Real Estate Finance Trust Inc.
The Real Estate Income Play
KREF is the clearest fit if your priority is defensive.
- Beta 0.87, yield 15.2%, current ratio 0.32x
- Better valuation composite
- 15.2% yield, vs ARI's 9.3%
Best for: defensive
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | ARI | 1.3% FFO/revenue growth vs KREF's -22.7% |
| Value | KREF | Better valuation composite |
| Quality / Margins | ARI | 17.9% margin vs KREF's -23.6% |
| Stability / Safety | ARI | Beta 0.60 vs KREF's 0.87 |
| Dividends | KREF | 15.2% yield, vs ARI's 9.3% |
| Momentum (1Y) | ARI | +27.9% vs KREF's -16.7% |
| Efficiency (ROA) | ARI | 1.3% ROA vs KREF's -1.6%, ROIC 4.0% vs 3.4% |
ARI vs KREF — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLARILAGGINGKREF
KREFKKR Real Estate Finan…
2leads
ARIApollo Commercial Rea…
4leads
6 Total Categories
CATEGORYLEADERvs KREFMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
ARI4/6
Valuation MetricsMultiples, price ratios, and targets
KREF5/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
ARI6/9
Total Returns1Y, 3Y, 5Y total returns with dividends
ARI6/6
Risk & VolatilityBeta, volatility, and downside exposure
ARI2/2
Analyst OutlookRatings, price targets, and dividends
KREF1/1
Income & Cash Flow (Last 12 Months)
ARI leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
ARI is the larger business by revenue, generating $709M annually — 1.6x KREF's $442M. ARI is the more profitable business, keeping 17.9% of every revenue dollar as net income compared to KREF's -23.6%. On growth, ARI holds the edge at -0.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ARIApollo Commercial… | KREFKKR Real Estate F… |
|---|---|---|
| RevenueTrailing 12 months | $709M | $442M |
| EBITDAEarnings before interest/tax | $410M | $140M |
| Net IncomeAfter-tax profit | $127M | -$104M |
| Free Cash FlowCash after capex | $40M | $65M |
| Gross MarginGross profit ÷ Revenue | +66.2% | +87.1% |
| Operating MarginEBIT ÷ Revenue | +56.0% | +48.0% |
| Net MarginNet income ÷ Revenue | +17.9% | -23.6% |
| FCF MarginFCF ÷ Revenue | +5.7% | +14.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | -0.8% | -13.8% |
| EPS Growth (YoY)Latest quarter vs prior year | 0.0% | -5.4% |
ARI leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
KREF leads this category, winning 5 of 5 comparable metrics.
Valuation Metrics
On an enterprise value basis, KREF's 18.3x EV/EBITDA is more attractive than ARI's 19.4x.
| Metric | ARIApollo Commercial… | KREFKKR Real Estate F… |
|---|---|---|
| Market CapShares × price | $1.5B | $422M |
| Enterprise ValueMkt cap + debt − cash | $9.2B | $5.0B |
| Trailing P/EPrice ÷ TTM EPS | 13.52x | -6.26x |
| Forward P/EPrice ÷ next-FY EPS est. | 12.66x | — |
| PEG RatioP/E ÷ EPS growth rate | 0.09x | — |
| EV / EBITDAEnterprise value multiple | 19.42x | 18.35x |
| Price / SalesMarket cap ÷ Revenue | 2.05x | 0.92x |
| Price / BookPrice ÷ Book value/share | 0.82x | 0.36x |
| Price / FCFMarket cap ÷ FCF | 34.38x | 6.33x |
KREF leads this category, winning 5 of 5 comparable metrics.
Profitability & Efficiency
ARI leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
ARI delivers a 6.9% return on equity — every $100 of shareholder capital generates $7 in annual profit, vs $-8 for KREF. KREF carries lower financial leverage with a 3.83x debt-to-equity ratio, signaling a more conservative balance sheet compared to ARI's 4.27x. On the Piotroski fundamental quality scale (0–9), ARI scores 6/9 vs KREF's 4/9, reflecting solid financial health.
| Metric | ARIApollo Commercial… | KREFKKR Real Estate F… |
|---|---|---|
| ROE (TTM)Return on equity | +6.9% | -8.4% |
| ROA (TTM)Return on assets | +1.3% | -1.6% |
| ROICReturn on invested capital | +4.0% | +3.4% |
| ROCEReturn on capital employed | +5.6% | +4.5% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 4 |
| Debt / EquityFinancial leverage | 4.27x | 3.83x |
| Net DebtTotal debt minus cash | $7.8B | $4.6B |
| Cash & Equiv.Liquid assets | $140M | $85M |
| Total DebtShort + long-term debt | $7.9B | $4.7B |
| Interest CoverageEBIT ÷ Interest expense | 1.28x | 0.84x |
ARI leads this category, winning 6 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
ARI leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in ARI five years ago would be worth $11,260 today (with dividends reinvested), compared to $6,401 for KREF. Over the past 12 months, ARI leads with a +27.9% total return vs KREF's -16.7%. The 3-year compound annual growth rate (CAGR) favors ARI at 14.8% vs KREF's -0.3% — a key indicator of consistent wealth creation.
| Metric | ARIApollo Commercial… | KREFKKR Real Estate F… |
|---|---|---|
| YTD ReturnYear-to-date | +13.6% | -17.6% |
| 1-Year ReturnPast 12 months | +27.9% | -16.7% |
| 3-Year ReturnCumulative with dividends | +51.3% | -0.8% |
| 5-Year ReturnCumulative with dividends | +12.6% | -36.0% |
| 10-Year ReturnCumulative with dividends | +62.9% | -9.2% |
| CAGR (3Y)Annualised 3-year return | +14.8% | -0.3% |
ARI leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
ARI leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
ARI is the less volatile stock with a 0.60 beta — it tends to amplify market swings less than KREF's 0.87 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ARI currently trades 97.4% from its 52-week high vs KREF's 65.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ARIApollo Commercial… | KREFKKR Real Estate F… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.60x | 0.87x |
| 52-Week HighHighest price in past year | $11.24 | $9.98 |
| 52-Week LowLowest price in past year | $9.30 | $5.29 |
| % of 52W HighCurrent price vs 52-week peak | +97.4% | +65.8% |
| RSI (14)Momentum oscillator 0–100 | 55.0 | 53.1 |
| Avg Volume (50D)Average daily shares traded | 1.4M | 1.6M |
ARI leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
KREF leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates ARI as "Hold" and KREF as "Buy". Consensus price targets imply 9.6% upside for ARI (target: $12) vs 6.5% for KREF (target: $7). For income investors, KREF offers the higher dividend yield at 15.23% vs ARI's 9.29%.
| Metric | ARIApollo Commercial… | KREFKKR Real Estate F… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $12.00 | $7.00 |
| # AnalystsCovering analysts | 12 | 12 |
| Dividend YieldAnnual dividend ÷ price | +9.3% | +15.2% |
| Dividend StreakConsecutive years of raises | 0 | 0 |
| Dividend / ShareAnnual DPS | $1.02 | $1.00 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +10.3% |
KREF leads this category, winning 1 of 1 comparable metric.
Key Takeaway
ARI leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). KREF leads in 2 (Valuation Metrics, Analyst Outlook).
Best OverallApollo Commercial Real Esta… (ARI)Leads 4 of 6 categories
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ARI vs KREF: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is ARI or KREF a better buy right now?
For growth investors, Apollo Commercial Real Estate Finance, Inc.
(ARI) is the stronger pick with 1. 3% revenue growth year-over-year, versus -22. 7% for KKR Real Estate Finance Trust Inc. (KREF). Apollo Commercial Real Estate Finance, Inc. (ARI) offers the better valuation at 13. 5x trailing P/E (12. 7x forward), making it the more compelling value choice. Analysts rate KKR Real Estate Finance Trust Inc. (KREF) a "Buy" — based on 12 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — ARI or KREF?
Over the past 5 years, Apollo Commercial Real Estate Finance, Inc.
(ARI) delivered a total return of +12. 6%, compared to -36. 0% for KKR Real Estate Finance Trust Inc. (KREF). Over 10 years, the gap is even starker: ARI returned +62. 9% versus KREF's -9. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — ARI or KREF?
By beta (market sensitivity over 5 years), Apollo Commercial Real Estate Finance, Inc.
(ARI) is the lower-risk stock at 0. 60β versus KKR Real Estate Finance Trust Inc. 's 0. 87β — meaning KREF is approximately 46% more volatile than ARI relative to the S&P 500. On balance sheet safety, KKR Real Estate Finance Trust Inc. (KREF) carries a lower debt/equity ratio of 4% versus 4% for Apollo Commercial Real Estate Finance, Inc. — giving it more financial flexibility in a downturn.
04Which is growing faster — ARI or KREF?
By revenue growth (latest reported year), Apollo Commercial Real Estate Finance, Inc.
(ARI) is pulling ahead at 1. 3% versus -22. 7% for KKR Real Estate Finance Trust Inc. (KREF). On earnings-per-share growth, the picture is similar: Apollo Commercial Real Estate Finance, Inc. grew EPS 183. 5% year-over-year, compared to -652. 6% for KKR Real Estate Finance Trust Inc.. Over a 3-year CAGR, ARI leads at 3. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
05Which has better profit margins — ARI or KREF?
Apollo Commercial Real Estate Finance, Inc.
(ARI) is the more profitable company, earning 17. 8% net margin versus -10. 3% for KKR Real Estate Finance Trust Inc. — meaning it keeps 17. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ARI leads at 65. 4% versus 59. 3% for KREF. At the gross margin level — before operating expenses — KREF leads at 88. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is ARI or KREF more undervalued right now?
Analyst consensus price targets imply the most upside for ARI: 9.
6% to $12. 00.
07Which pays a better dividend — ARI or KREF?
All stocks in this comparison pay dividends.
KKR Real Estate Finance Trust Inc. (KREF) offers the highest yield at 15. 2%, versus 9. 3% for Apollo Commercial Real Estate Finance, Inc. (ARI).
08Is ARI or KREF better for a retirement portfolio?
For long-horizon retirement investors, Apollo Commercial Real Estate Finance, Inc.
(ARI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 60), 9. 3% yield). Both have compounded well over 10 years (ARI: +62. 9%, KREF: -9. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between ARI and KREF?
Both stocks operate in the Real Estate sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: ARI is a small-cap deep-value stock; KREF is a small-cap income-oriented stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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