Analyzing ACRES Commercial Realty (NYSE:ACR) & Ladder Capital (NYSE:LADR)
ACRES Commercial Realty (NYSE:ACR – Get Rating) and Ladder Capital (NYSE:LADR – Get Rating) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.
Insider & Institutional Ownership
42.7% of ACRES Commercial Realty shares are held by institutional investors. Comparatively, 58.3% of Ladder Capital shares are held by institutional investors. 3.0% of ACRES Commercial Realty shares are held by company insiders. Comparatively, 11.1% of Ladder Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares ACRES Commercial Realty and Ladder Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ACRES Commercial Realty||37.47%||0.75%||0.16%|
This is a breakdown of current recommendations for ACRES Commercial Realty and Ladder Capital, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ACRES Commercial Realty||0||0||1||0||3.00|
ACRES Commercial Realty currently has a consensus target price of $19.00, indicating a potential upside of 91.73%. Ladder Capital has a consensus target price of $13.50, indicating a potential upside of 18.01%. Given ACRES Commercial Realty’s higher possible upside, analysts plainly believe ACRES Commercial Realty is more favorable than Ladder Capital.
Earnings & Valuation
This table compares ACRES Commercial Realty and Ladder Capital’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|ACRES Commercial Realty||$50.08 million||1.80||$33.92 million||$0.47||21.09|
|Ladder Capital||$357.85 million||4.09||$56.52 million||$0.60||19.07|
Ladder Capital has higher revenue and earnings than ACRES Commercial Realty. Ladder Capital is trading at a lower price-to-earnings ratio than ACRES Commercial Realty, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
ACRES Commercial Realty has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500. Comparatively, Ladder Capital has a beta of 1.96, suggesting that its share price is 96% more volatile than the S&P 500.
Ladder Capital beats ACRES Commercial Realty on 9 of the 12 factors compared between the two stocks.
About ACRES Commercial Realty (Get Rating)
ACRES Commercial Realty Corp., a real estate investment trust (REIT), focuses on the origination, holding, and management of commercial real estate mortgage loans and other commercial real estate-related debt investments in the United States. It invests in commercial real estate-related assets, including floating and fixed rate first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine debt, preferred equity investments, commercial mortgage-backed securities, and commercial real estate equity and preferred equity investments. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income. The company was formerly known as Exantas Capital Corp. and changed its name to ACRES Commercial Realty Corp. in February 2021. ACRES Commercial Realty Corp. was incorporated in 2005 and is based in Uniondale, New York.
About Ladder Capital (Get Rating)
The Loans segment originates conduit first mortgage loans that are secured by cash-flowing commercial real estate; and originates and invests in balance sheet first mortgage loans secured by commercial real estate properties that are undergoing transition, including lease-up, sell-out, and renovation or repositioning. It also invests in note purchase financings, subordinated debt, mezzanine debt, and other structured finance products related to commercial real estate. The Securities segment invests in commercial mortgage-backed securities and the U.S. Agency Securities. This segment also invests in corporate bonds and equity securities. The Real Estate segment owns and invests in a portfolio of commercial and residential real estate properties, such as leased properties, office buildings, student housing portfolios, hotels, industrial buildings, shopping center, and condominium units. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Ladder Capital Corp was founded in 2008 and is headquartered in New York, New York.
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