ACRE
Ares Commercial Real Estate Corporation
REIT - Mortgage
Market Cap$287M
5Y Perf.-29.9%
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Stock Comparison
ACRE 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%
ACRE vs KREF — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ACRE | KREF |
|---|---|---|
| Industry | REIT - Mortgage | REIT - Mortgage |
| Market Cap | $287M | $422M |
| Revenue (TTM) | $56M | $442M |
| Net Income (TTM) | $-902K | $-104M |
| Gross Margin | 75.1% | 87.1% |
| Operating Margin | 60.4% | 48.0% |
| Forward P/E | 16.9x | — |
| Total Debt | $1.05B | $4.69B |
| Cash & Equiv. | $29M | $85M |
ACRE vs KREF — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
ACRE
KREF
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Ares Commercial Rea… (ACRE) | 100 | 70.1 | -29.9% |
| KKR Real Estate Fin… (KREF) | 100 | 40.6 | -59.4% |
Price return only. Dividends and distributions are not included.
Quick Verdict: ACRE vs KREF
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: ACRE leads in 4 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 capital preservation and lower volatility. As sector peers, any of these can serve as alternatives in the same allocation.
ACRE
Ares Commercial Real Estate Corporation
The Real Estate Income Play
ACRE carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth -2.8%, EPS growth 97.4%, 3Y rev CAGR -7.8%
- 45.0% 10Y total return vs KREF's -9.2%
- -2.8% FFO/revenue growth vs KREF's -22.7%
Best for: growth exposure and long-term compounding
KREF
KKR Real Estate Finance Trust Inc.
The Real Estate Income Play
KREF is the clearest fit if your priority is income & stability and sleep-well-at-night.
- Dividend streak 0 yrs, beta 0.87, yield 15.2%
- Lower volatility, beta 0.87, current ratio 0.32x
- Beta 0.87, yield 15.2%, current ratio 0.32x
Best for: income & stability and sleep-well-at-night
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | ACRE | -2.8% FFO/revenue growth vs KREF's -22.7% |
| Value | KREF | Better valuation composite |
| Quality / Margins | ACRE | -1.6% margin vs KREF's -23.6% |
| Stability / Safety | KREF | Beta 0.87 vs ACRE's 0.99 |
| Dividends | KREF | 15.2% yield, vs ACRE's 13.6% |
| Momentum (1Y) | ACRE | +41.3% vs KREF's -16.7% |
| Efficiency (ROA) | ACRE | -0.1% ROA vs KREF's -1.6%, ROIC 2.9% vs 3.4% |
ACRE vs KREF — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
Segment breakdown not available.
ACRE vs KREF — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLACRELAGGINGKREF
KREFKKR Real Estate Finan…
2leads
ACREAres Commercial Real …
3leads
6 Total Categories
CATEGORYLEADERvs KREFMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
ACRE5/6
Valuation MetricsMultiples, price ratios, and targets
KREF4/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
ACRE8/9
Total Returns1Y, 3Y, 5Y total returns with dividends
ACRE4/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
KREF1/1
Income & Cash Flow (Last 12 Months)
ACRE leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
KREF is the larger business by revenue, generating $442M annually — 7.9x ACRE's $56M. ACRE is the more profitable business, keeping -1.6% of every revenue dollar as net income compared to KREF's -23.6%. On growth, ACRE holds the edge at +60.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ACREAres Commercial R… | KREFKKR Real Estate F… |
|---|---|---|
| RevenueTrailing 12 months | $56M | $442M |
| EBITDAEarnings before interest/tax | $40M | $140M |
| Net IncomeAfter-tax profit | -$902,000 | -$104M |
| Free Cash FlowCash after capex | $21M | $65M |
| Gross MarginGross profit ÷ Revenue | +75.1% | +87.1% |
| Operating MarginEBIT ÷ Revenue | +60.4% | +48.0% |
| Net MarginNet income ÷ Revenue | -1.6% | -23.6% |
| FCF MarginFCF ÷ Revenue | +37.5% | +14.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +60.8% | -13.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +65.0% | -5.4% |
ACRE leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
KREF leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
On an enterprise value basis, KREF's 18.3x EV/EBITDA is more attractive than ACRE's 18.6x.
| Metric | ACREAres Commercial R… | KREFKKR Real Estate F… |
|---|---|---|
| Market CapShares × price | $287M | $422M |
| Enterprise ValueMkt cap + debt − cash | $1.3B | $5.0B |
| Trailing P/EPrice ÷ TTM EPS | -318.29x | -6.26x |
| Forward P/EPrice ÷ next-FY EPS est. | 16.89x | — |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 18.60x | 18.35x |
| Price / SalesMarket cap ÷ Revenue | 3.37x | 0.92x |
| Price / BookPrice ÷ Book value/share | 0.56x | 0.36x |
| Price / FCFMarket cap ÷ FCF | 13.45x | 6.33x |
KREF leads this category, winning 4 of 5 comparable metrics.
Profitability & Efficiency
ACRE leads this category, winning 8 of 9 comparable metrics.
Profitability & Efficiency
ACRE delivers a -0.2% return on equity — every $100 of shareholder capital generates $-0 in annual profit, vs $-8 for KREF. ACRE carries lower financial leverage with a 2.06x debt-to-equity ratio, signaling a more conservative balance sheet compared to KREF's 3.83x. On the Piotroski fundamental quality scale (0–9), ACRE scores 5/9 vs KREF's 4/9, reflecting solid financial health.
| Metric | ACREAres Commercial R… | KREFKKR Real Estate F… |
|---|---|---|
| ROE (TTM)Return on equity | -0.2% | -8.4% |
| ROA (TTM)Return on assets | -0.1% | -1.6% |
| ROICReturn on invested capital | +2.9% | +3.4% |
| ROCEReturn on capital employed | +5.2% | +4.5% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 4 |
| Debt / EquityFinancial leverage | 2.06x | 3.83x |
| Net DebtTotal debt minus cash | -$29M | $4.6B |
| Cash & Equiv.Liquid assets | $29M | $85M |
| Total DebtShort + long-term debt | $1.0B | $4.7B |
| Interest CoverageEBIT ÷ Interest expense | 0.95x | 0.84x |
ACRE leads this category, winning 8 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
ACRE leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in ACRE five years ago would be worth $7,177 today (with dividends reinvested), compared to $6,401 for KREF. Over the past 12 months, ACRE leads with a +41.3% total return vs KREF's -16.7%. The 3-year compound annual growth rate (CAGR) favors KREF at -0.3% vs ACRE's -0.8% — a key indicator of consistent wealth creation.
| Metric | ACREAres Commercial R… | KREFKKR Real Estate F… |
|---|---|---|
| YTD ReturnYear-to-date | +13.5% | -17.6% |
| 1-Year ReturnPast 12 months | +41.3% | -16.7% |
| 3-Year ReturnCumulative with dividends | -2.3% | -0.8% |
| 5-Year ReturnCumulative with dividends | -28.2% | -36.0% |
| 10-Year ReturnCumulative with dividends | +45.0% | -9.2% |
| CAGR (3Y)Annualised 3-year return | -0.8% | -0.3% |
ACRE leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
Evenly matched — ACRE and KREF each lead in 1 of 2 comparable metrics.
Risk & Volatility
KREF is the less volatile stock with a 0.87 beta — it tends to amplify market swings less than ACRE's 0.99 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ACRE currently trades 88.6% from its 52-week high vs KREF's 65.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ACREAres Commercial R… | KREFKKR Real Estate F… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.99x | 0.87x |
| 52-Week HighHighest price in past year | $5.89 | $9.98 |
| 52-Week LowLowest price in past year | $4.05 | $5.29 |
| % of 52W HighCurrent price vs 52-week peak | +88.6% | +65.8% |
| RSI (14)Momentum oscillator 0–100 | 52.4 | 53.1 |
| Avg Volume (50D)Average daily shares traded | 392K | 1.6M |
Evenly matched — ACRE and KREF each lead in 1 of 2 comparable metrics.
Analyst Outlook
KREF leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates ACRE as "Buy" and KREF as "Buy". Consensus price targets imply 6.5% upside for KREF (target: $7) vs -4.2% for ACRE (target: $5). For income investors, KREF offers the higher dividend yield at 15.23% vs ACRE's 13.62%.
| Metric | ACREAres Commercial R… | KREFKKR Real Estate F… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $5.00 | $7.00 |
| # AnalystsCovering analysts | 13 | 12 |
| Dividend YieldAnnual dividend ÷ price | +13.6% | +15.2% |
| Dividend StreakConsecutive years of raises | 0 | 0 |
| Dividend / ShareAnnual DPS | $0.71 | $1.00 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +10.3% |
KREF leads this category, winning 1 of 1 comparable metric.
Key Takeaway
ACRE leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). KREF leads in 2 (Valuation Metrics, Analyst Outlook). 1 tied.
Best OverallAres Commercial Real Estate… (ACRE)Leads 3 of 6 categories
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ACRE vs KREF: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is ACRE or KREF a better buy right now?
For growth investors, Ares Commercial Real Estate Corporation (ACRE) is the stronger pick with -2.
8% revenue growth year-over-year, versus -22. 7% for KKR Real Estate Finance Trust Inc. (KREF). Analysts rate Ares Commercial Real Estate Corporation (ACRE) a "Buy" — based on 13 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 — ACRE or KREF?
Over the past 5 years, Ares Commercial Real Estate Corporation (ACRE) delivered a total return of -28.
2%, compared to -36. 0% for KKR Real Estate Finance Trust Inc. (KREF). Over 10 years, the gap is even starker: ACRE returned +45. 0% 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 — ACRE or KREF?
By beta (market sensitivity over 5 years), KKR Real Estate Finance Trust Inc.
(KREF) is the lower-risk stock at 0. 87β versus Ares Commercial Real Estate Corporation's 0. 99β — meaning ACRE is approximately 14% more volatile than KREF relative to the S&P 500. On balance sheet safety, Ares Commercial Real Estate Corporation (ACRE) carries a lower debt/equity ratio of 2% versus 4% for KKR Real Estate Finance Trust Inc. — giving it more financial flexibility in a downturn.
04Which is growing faster — ACRE or KREF?
By revenue growth (latest reported year), Ares Commercial Real Estate Corporation (ACRE) is pulling ahead at -2.
8% versus -22. 7% for KKR Real Estate Finance Trust Inc. (KREF). On earnings-per-share growth, the picture is similar: Ares Commercial Real Estate Corporation grew EPS 97. 4% year-over-year, compared to -652. 6% for KKR Real Estate Finance Trust Inc.. Over a 3-year CAGR, KREF leads at 1. 6% 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 — ACRE or KREF?
Ares Commercial Real Estate Corporation (ACRE) is the more profitable company, earning -1.
1% net margin versus -10. 3% for KKR Real Estate Finance Trust Inc. — meaning it keeps -1. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ACRE leads at 72. 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 ACRE or KREF more undervalued right now?
Analyst consensus price targets imply the most upside for KREF: 6.
5% to $7. 00.
07Which pays a better dividend — ACRE or KREF?
All stocks in this comparison pay dividends.
KKR Real Estate Finance Trust Inc. (KREF) offers the highest yield at 15. 2%, versus 13. 6% for Ares Commercial Real Estate Corporation (ACRE).
08Is ACRE or KREF better for a retirement portfolio?
For long-horizon retirement investors, KKR Real Estate Finance Trust Inc.
(KREF) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 87), 15. 2% yield). Both have compounded well over 10 years (KREF: -9. 2%, ACRE: +45. 0%), 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 ACRE 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.
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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