ACRE vs. IVR, MITT, NYMT, DX, RWT, ARR, AHH, CIM, MFA, and PMT
Should you be buying Ares Commercial Real Estate stock or one of its competitors? The main competitors of Ares Commercial Real Estate include Invesco Mortgage Capital (IVR), AG Mortgage Investment Trust (MITT), New York Mortgage Trust (NYMT), Dynex Capital (DX), Redwood Trust (RWT), ARMOUR Residential REIT (ARR), Armada Hoffler Properties (AHH), Chimera Investment (CIM), MFA Financial (MFA), and PennyMac Mortgage Investment Trust (PMT). These companies are all part of the "finance" sector.
Ares Commercial Real Estate (NYSE:ACRE) and Invesco Mortgage Capital (NYSE:IVR) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their community ranking, earnings, institutional ownership, risk, analyst recommendations, media sentiment, profitability, valuation and dividends.
41.3% of Ares Commercial Real Estate shares are owned by institutional investors. Comparatively, 40.5% of Invesco Mortgage Capital shares are owned by institutional investors. 2.8% of Ares Commercial Real Estate shares are owned by insiders. Comparatively, 0.2% of Invesco Mortgage Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Ares Commercial Real Estate presently has a consensus price target of $8.42, suggesting a potential upside of 23.41%. Invesco Mortgage Capital has a consensus price target of $9.25, suggesting a potential downside of 1.70%. Given Ares Commercial Real Estate's stronger consensus rating and higher probable upside, analysts clearly believe Ares Commercial Real Estate is more favorable than Invesco Mortgage Capital.
Invesco Mortgage Capital has lower revenue, but higher earnings than Ares Commercial Real Estate. Invesco Mortgage Capital is trading at a lower price-to-earnings ratio than Ares Commercial Real Estate, indicating that it is currently the more affordable of the two stocks.
Ares Commercial Real Estate has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, Invesco Mortgage Capital has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500.
Invesco Mortgage Capital received 103 more outperform votes than Ares Commercial Real Estate when rated by MarketBeat users. However, 60.00% of users gave Ares Commercial Real Estate an outperform vote while only 55.73% of users gave Invesco Mortgage Capital an outperform vote.
Invesco Mortgage Capital has a net margin of -2.96% compared to Ares Commercial Real Estate's net margin of -54.60%. Invesco Mortgage Capital's return on equity of 62.02% beat Ares Commercial Real Estate's return on equity.
Ares Commercial Real Estate pays an annual dividend of $1.00 per share and has a dividend yield of 14.7%. Invesco Mortgage Capital pays an annual dividend of $1.60 per share and has a dividend yield of 17.0%. Ares Commercial Real Estate pays out -120.5% of its earnings in the form of a dividend. Invesco Mortgage Capital pays out -228.6% 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. Invesco Mortgage Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
In the previous week, Invesco Mortgage Capital had 2 more articles in the media than Ares Commercial Real Estate. MarketBeat recorded 3 mentions for Invesco Mortgage Capital and 1 mentions for Ares Commercial Real Estate. Invesco Mortgage Capital's average media sentiment score of 0.84 beat Ares Commercial Real Estate's score of 0.44 indicating that Invesco Mortgage Capital is being referred to more favorably in the news media.
Summary
Invesco Mortgage Capital beats Ares Commercial Real Estate on 12 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ACRE and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis 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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