ACRE vs. MITT, NYMT, DX, RWT, ARR, AHH, CIM, MFA, PMT, and TWO
Should you be buying Ares Commercial Real Estate stock or one of its competitors? The main competitors of Ares Commercial Real Estate include 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), PennyMac Mortgage Investment Trust (PMT), and Two Harbors Investment (TWO). These companies are all part of the "finance" sector.
Ares Commercial Real Estate (NYSE:ACRE) and AG Mortgage Investment Trust (NYSE:MITT) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, community ranking, institutional ownership, media sentiment, earnings, valuation, dividends and analyst recommendations.
Ares Commercial Real Estate received 4 more outperform votes than AG Mortgage Investment Trust when rated by MarketBeat users. However, 64.66% of users gave AG Mortgage Investment Trust an outperform vote while only 60.11% of users gave Ares Commercial Real Estate an outperform vote.
AG Mortgage Investment Trust has a net margin of 20.66% compared to Ares Commercial Real Estate's net margin of -43.30%. AG Mortgage Investment Trust's return on equity of 8.64% beat Ares Commercial Real Estate's return on equity.
AG Mortgage Investment Trust has higher revenue and earnings than Ares Commercial Real Estate. Ares Commercial Real Estate is trading at a lower price-to-earnings ratio than AG Mortgage Investment Trust, indicating that it is currently the more affordable of the two stocks.
41.3% of Ares Commercial Real Estate shares are held by institutional investors. Comparatively, 27.3% of AG Mortgage Investment Trust shares are held by institutional investors. 2.8% of Ares Commercial Real Estate shares are held by insiders. Comparatively, 3.2% of AG Mortgage Investment Trust shares are held by 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.
In the previous week, AG Mortgage Investment Trust had 1 more articles in the media than Ares Commercial Real Estate. MarketBeat recorded 3 mentions for AG Mortgage Investment Trust and 2 mentions for Ares Commercial Real Estate. AG Mortgage Investment Trust's average media sentiment score of 0.99 beat Ares Commercial Real Estate's score of -0.33 indicating that AG Mortgage Investment Trust is being referred to more favorably in the news media.
Ares Commercial Real Estate pays an annual dividend of $1.00 per share and has a dividend yield of 14.6%. AG Mortgage Investment Trust pays an annual dividend of $0.72 per share and has a dividend yield of 12.7%. Ares Commercial Real Estate pays out -138.9% of its earnings in the form of a dividend. AG Mortgage Investment Trust pays out 45.9% 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.
Ares Commercial Real Estate currently has a consensus target price of $8.79, suggesting a potential upside of 28.26%. AG Mortgage Investment Trust has a consensus target price of $7.25, suggesting a potential upside of 28.21%. Given Ares Commercial Real Estate's higher probable upside, analysts plainly believe Ares Commercial Real Estate is more favorable than AG Mortgage Investment Trust.
Ares Commercial Real Estate has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, AG Mortgage Investment Trust has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500.
Summary
AG Mortgage Investment Trust beats Ares Commercial Real Estate on 13 of the 20 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.
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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