REIT - Mortgage
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SEVN vs KREF
Revenue, margins, valuation, and 5-year total return — side by side.
REIT - Mortgage
SEVN vs KREF — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | REIT - Mortgage | REIT - Mortgage |
| Market Cap | $128M | $423M |
| Revenue (TTM) | $44M | $442M |
| Net Income (TTM) | $15M | $-104M |
| Gross Margin | 66.6% | 87.1% |
| Operating Margin | 75.3% | 48.0% |
| Forward P/E | 7.9x | — |
| Total Debt | $488M | $4.69B |
| Cash & Equiv. | $123M | $85M |
SEVN vs KREF — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Seven Hills Realty … (SEVN) | 100 | 72.7 | -27.3% |
| KKR Real Estate Fin… (KREF) | 100 | 40.6 | -59.4% |
Price return only. Dividends and distributions are not included.
Quick Verdict: SEVN vs KREF
Each card shows where this stock fits in a portfolio — not just who wins on paper.
SEVN 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 14.7%
- Rev growth 96.4%, EPS growth -16.7%, 3Y rev CAGR 1.7%
- 3.6% 10Y total return vs KREF's -9.1%
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 SEVN's 14.7%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 96.4% FFO/revenue growth vs KREF's -22.7% | |
| Value | Better valuation composite | |
| Quality / Margins | 34.9% margin vs KREF's -23.6% | |
| Stability / Safety | Beta 0.60 vs KREF's 0.87, lower leverage | |
| Dividends | 15.2% yield, vs SEVN's 14.7% | |
| Momentum (1Y) | -16.9% vs SEVN's -18.1% | |
| Efficiency (ROA) | 2.0% ROA vs KREF's -1.6%, ROIC 5.1% vs 3.4% |
SEVN vs KREF — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
SEVN 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 — 10.1x SEVN's $44M. SEVN is the more profitable business, keeping 34.9% of every revenue dollar as net income compared to KREF's -23.6%. On growth, SEVN holds the edge at +9.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $44M | $442M |
| EBITDAEarnings before interest/tax | $34M | $140M |
| Net IncomeAfter-tax profit | $15M | -$104M |
| Free Cash FlowCash after capex | $16M | $65M |
| Gross MarginGross profit ÷ Revenue | +66.6% | +87.1% |
| Operating MarginEBIT ÷ Revenue | +75.3% | +48.0% |
| Net MarginNet income ÷ Revenue | +34.9% | -23.6% |
| FCF MarginFCF ÷ Revenue | +37.4% | +14.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +9.8% | -13.8% |
| EPS Growth (YoY)Latest quarter vs prior year | -36.7% | -5.4% |
Valuation Metrics
KREF leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
On an enterprise value basis, SEVN's 10.7x EV/EBITDA is more attractive than KREF's 18.3x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $128M | $423M |
| Enterprise ValueMkt cap + debt − cash | $492M | $5.0B |
| Trailing P/EPrice ÷ TTM EPS | 8.42x | -6.27x |
| Forward P/EPrice ÷ next-FY EPS est. | 7.87x | — |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 10.70x | 18.35x |
| Price / SalesMarket cap ÷ Revenue | 2.18x | 0.92x |
| Price / BookPrice ÷ Book value/share | 0.39x | 0.36x |
| Price / FCFMarket cap ÷ FCF | 8.53x | 6.34x |
Profitability & Efficiency
SEVN leads this category, winning 8 of 8 comparable metrics.
Profitability & Efficiency
SEVN delivers a 5.1% return on equity — every $100 of shareholder capital generates $5 in annual profit, vs $-8 for KREF. SEVN carries lower financial leverage with a 1.48x debt-to-equity ratio, signaling a more conservative balance sheet compared to KREF's 3.83x.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +5.1% | -8.4% |
| ROA (TTM)Return on assets | +2.0% | -1.6% |
| ROICReturn on invested capital | +5.1% | +3.4% |
| ROCEReturn on capital employed | +11.5% | +4.5% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 4 |
| Debt / EquityFinancial leverage | 1.48x | 3.83x |
| Net DebtTotal debt minus cash | $364M | $4.6B |
| Cash & Equiv.Liquid assets | $123M | $85M |
| Total DebtShort + long-term debt | $488M | $4.7B |
| Interest CoverageEBIT ÷ Interest expense | 1.52x | 0.84x |
Total Returns (Dividends Reinvested)
SEVN leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in SEVN five years ago would be worth $11,887 today (with dividends reinvested), compared to $6,436 for KREF. Over the past 12 months, KREF leads with a -16.9% total return vs SEVN's -18.1%. The 3-year compound annual growth rate (CAGR) favors SEVN at 10.2% vs KREF's -0.2% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +0.9% | -17.5% |
| 1-Year ReturnPast 12 months | -18.1% | -16.9% |
| 3-Year ReturnCumulative with dividends | +33.7% | -0.7% |
| 5-Year ReturnCumulative with dividends | +18.9% | -35.6% |
| 10-Year ReturnCumulative with dividends | +3.6% | -9.1% |
| CAGR (3Y)Annualised 3-year return | +10.2% | -0.2% |
Risk & Volatility
Evenly matched — SEVN and KREF each lead in 1 of 2 comparable metrics.
Risk & Volatility
SEVN 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.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.60x | 0.87x |
| 52-Week HighHighest price in past year | $12.86 | $9.98 |
| 52-Week LowLowest price in past year | $7.90 | $5.29 |
| % of 52W HighCurrent price vs 52-week peak | +65.5% | +65.9% |
| RSI (14)Momentum oscillator 0–100 | 56.2 | 54.4 |
| Avg Volume (50D)Average daily shares traded | 105K | 1.5M |
Analyst Outlook
KREF leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates SEVN as "Buy" and KREF as "Buy". Consensus price targets imply 54.4% upside for SEVN (target: $13) vs 6.4% for KREF (target: $7). For income investors, KREF offers the higher dividend yield at 15.21% vs SEVN's 14.68%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $13.00 | $7.00 |
| # AnalystsCovering analysts | 4 | 12 |
| Dividend YieldAnnual dividend ÷ price | +14.7% | +15.2% |
| Dividend StreakConsecutive years of raises | 0 | 0 |
| Dividend / ShareAnnual DPS | $1.24 | $1.00 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.3% | +10.3% |
SEVN leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). KREF leads in 2 (Valuation Metrics, Analyst Outlook). 1 tied.
SEVN vs KREF: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is SEVN or KREF a better buy right now?
For growth investors, Seven Hills Realty Trust (SEVN) is the stronger pick with 96.
4% revenue growth year-over-year, versus -22. 7% for KKR Real Estate Finance Trust Inc. (KREF). Seven Hills Realty Trust (SEVN) offers the better valuation at 8. 4x trailing P/E (7. 9x forward), making it the more compelling value choice. Analysts rate Seven Hills Realty Trust (SEVN) a "Buy" — based on 4 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 — SEVN or KREF?
Over the past 5 years, Seven Hills Realty Trust (SEVN) delivered a total return of +18.
9%, compared to -35. 6% for KKR Real Estate Finance Trust Inc. (KREF). Over 10 years, the gap is even starker: SEVN returned +3. 6% versus KREF's -9. 1%. 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 — SEVN or KREF?
By beta (market sensitivity over 5 years), Seven Hills Realty Trust (SEVN) is the lower-risk stock at 0.
60β versus KKR Real Estate Finance Trust Inc. 's 0. 87β — meaning KREF is approximately 45% more volatile than SEVN relative to the S&P 500. On balance sheet safety, Seven Hills Realty Trust (SEVN) carries a lower debt/equity ratio of 148% versus 4% for KKR Real Estate Finance Trust Inc. — giving it more financial flexibility in a downturn.
04Which is growing faster — SEVN or KREF?
By revenue growth (latest reported year), Seven Hills Realty Trust (SEVN) is pulling ahead at 96.
4% versus -22. 7% for KKR Real Estate Finance Trust Inc. (KREF). On earnings-per-share growth, the picture is similar: Seven Hills Realty Trust grew EPS -16. 7% year-over-year, compared to -652. 6% for KKR Real Estate Finance Trust Inc.. Over a 3-year CAGR, SEVN leads at 1. 7% 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 — SEVN or KREF?
Seven Hills Realty Trust (SEVN) is the more profitable company, earning 26.
2% net margin versus -10. 3% for KKR Real Estate Finance Trust Inc. — meaning it keeps 26. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SEVN leads at 76. 3% 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 SEVN or KREF more undervalued right now?
Analyst consensus price targets imply the most upside for SEVN: 54.
4% to $13. 00.
07Which pays a better dividend — SEVN or KREF?
All stocks in this comparison pay dividends.
KKR Real Estate Finance Trust Inc. (KREF) offers the highest yield at 15. 2%, versus 14. 7% for Seven Hills Realty Trust (SEVN).
08Is SEVN or KREF better for a retirement portfolio?
For long-horizon retirement investors, Seven Hills Realty Trust (SEVN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
60), 14. 7% yield). Both have compounded well over 10 years (SEVN: +3. 6%, KREF: -9. 1%), 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 SEVN 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: SEVN is a small-cap high-growth 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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