ACRE vs. TWO, RC, CIM, PMT, ARR, MFA, DX, RWT, NYMT, and IVR
Should you be buying Ares Commercial Real Estate stock or one of its competitors? The main competitors of Ares Commercial Real Estate include Two Harbors Investment (TWO), Ready Capital (RC), Chimera Investment (CIM), PennyMac Mortgage Investment Trust (PMT), ARMOUR Residential REIT (ARR), MFA Financial (MFA), Dynex Capital (DX), Redwood Trust (RWT), New York Mortgage Trust (NYMT), and Invesco Mortgage Capital (IVR). These companies are all part of the "mortgage reits" industry.
Ares Commercial Real Estate vs.
Two Harbors Investment (NYSE:TWO) and Ares Commercial Real Estate (NYSE:ACRE) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership, community ranking, media sentiment and dividends.
In the previous week, Two Harbors Investment had 4 more articles in the media than Ares Commercial Real Estate. MarketBeat recorded 12 mentions for Two Harbors Investment and 8 mentions for Ares Commercial Real Estate. Two Harbors Investment's average media sentiment score of 0.49 beat Ares Commercial Real Estate's score of -0.11 indicating that Two Harbors Investment is being referred to more favorably in the media.
Two Harbors Investment received 206 more outperform votes than Ares Commercial Real Estate when rated by MarketBeat users. Likewise, 67.31% of users gave Two Harbors Investment an outperform vote while only 58.99% of users gave Ares Commercial Real Estate an outperform vote.
Two Harbors Investment pays an annual dividend of $1.80 per share and has a dividend yield of 15.1%. Ares Commercial Real Estate pays an annual dividend of $1.00 per share and has a dividend yield of 16.9%. Two Harbors Investment pays out -37.3% of its earnings in the form of a dividend. Ares Commercial Real Estate pays out -84.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Ares Commercial Real Estate is clearly the better dividend stock, given its higher yield and lower payout ratio.
64.2% of Two Harbors Investment shares are held by institutional investors. Comparatively, 41.3% of Ares Commercial Real Estate shares are held by institutional investors. 0.6% of Two Harbors Investment shares are held by insiders. Comparatively, 2.8% of Ares Commercial Real Estate shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Two Harbors Investment has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500. Comparatively, Ares Commercial Real Estate has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500.
Two Harbors Investment currently has a consensus target price of $13.71, indicating a potential upside of 14.67%. Ares Commercial Real Estate has a consensus target price of $6.90, indicating a potential upside of 16.32%. Given Ares Commercial Real Estate's higher possible upside, analysts plainly believe Ares Commercial Real Estate is more favorable than Two Harbors Investment.
Ares Commercial Real Estate has lower revenue, but higher earnings than Two Harbors Investment. Ares Commercial Real Estate is trading at a lower price-to-earnings ratio than Two Harbors Investment, indicating that it is currently the more affordable of the two stocks.
Two Harbors Investment has a net margin of -87.84% compared to Ares Commercial Real Estate's net margin of -95.81%. Two Harbors Investment's return on equity of 4.45% beat Ares Commercial Real Estate's return on equity.
Summary
Two Harbors Investment beats Ares Commercial Real Estate on 13 of the 20 factors compared between the two stocks.
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New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding {thisCompany.Symbol} and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Media Sentiment Over Time
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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This page (NYSE:ACRE) was last updated on 1/18/2025 by MarketBeat.com Staff
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