Bimini Capital Management (OTCMKTS:BMNM – Get Free Report) and KKR Real Estate Finance Trust (NYSE:KREF – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.
Earnings and Valuation
This table compares Bimini Capital Management 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 | |
| Bimini Capital Management | $11.90 million | 1.28 | -$1.31 million | $0.09 | 16.78 |
| KKR Real Estate Finance Trust | $564.63 million | 0.99 | $35.59 million | ($0.35) | -24.39 |
Risk and Volatility
Bimini Capital Management has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500. Comparatively, KKR Real Estate Finance Trust has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations for Bimini Capital Management and KKR Real Estate Finance Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bimini Capital Management | 0 | 0 | 0 | 0 | 0.00 |
| KKR Real Estate Finance Trust | 1 | 3 | 2 | 0 | 2.17 |
KKR Real Estate Finance Trust has a consensus price target of $9.94, suggesting a potential upside of 16.39%. Given KKR Real Estate Finance Trust’s stronger consensus rating and higher probable upside, analysts clearly believe KKR Real Estate Finance Trust is more favorable than Bimini Capital Management.
Profitability
This table compares Bimini Capital Management and KKR Real Estate Finance Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bimini Capital Management | -4.70% | -8.69% | -0.44% |
| KKR Real Estate Finance Trust | -0.12% | -0.60% | -0.12% |
Institutional & Insider Ownership
70.2% of KKR Real Estate Finance Trust shares are owned by institutional investors. 45.4% of Bimini Capital Management shares are owned by company insiders. Comparatively, 1.9% of KKR Real Estate Finance Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Dividends
Bimini Capital Management pays an annual dividend of $0.13 per share and has a dividend yield of 8.6%. KKR Real Estate Finance Trust pays an annual dividend of $1.00 per share and has a dividend yield of 11.7%. Bimini Capital Management pays out 144.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. KKR Real Estate Finance Trust pays out -285.7% of its earnings in the form of a dividend. KKR Real Estate Finance Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
KKR Real Estate Finance Trust beats Bimini Capital Management on 13 of the 16 factors compared between the two stocks.
About Bimini Capital Management
Bimini Capital Management, Inc., through its subsidiaries, operates as a specialty finance company in the United States. The company operates in two segments, Asset Management and Investment Portfolio. The Asset Management segment includes investment advisory services by Bimini Advisors to Orchid Island Capital, Inc. and Royal Palm Capital, LLC. The Investment Portfolio segment engages in investment activities conducted by Royal Palm Capital, LLC. It invests in residential mortgage-backed securities. The company was formerly known as Opteum Inc. and changed its name to Bimini Capital Management, Inc. in September 2007. Bimini Capital Management, Inc. was founded in 2003 and is based in Vero Beach, Florida.
About KKR Real Estate Finance Trust
KKR Real Estate Finance Trust Inc., a mortgage real estate investment trust, focuses primarily on originating and acquiring transitional 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 real estate loans. 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 Bimini Capital Management Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Bimini Capital Management and related companies with MarketBeat.com's FREE daily email newsletter.
