ACRES Commercial Realty (NYSE:ACR – Get Free Report) and NexPoint Real Estate Finance (NYSE:NREF – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.
Analyst Recommendations
This is a summary of current recommendations and price targets for ACRES Commercial Realty and NexPoint Real Estate Finance, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ACRES Commercial Realty | 2 | 0 | 2 | 0 | 2.00 |
| NexPoint Real Estate Finance | 0 | 4 | 0 | 0 | 2.00 |
ACRES Commercial Realty presently has a consensus price target of $24.50, indicating a potential upside of 67.69%. NexPoint Real Estate Finance has a consensus price target of $16.75, indicating a potential downside of 1.26%. Given ACRES Commercial Realty’s higher probable upside, analysts plainly believe ACRES Commercial Realty is more favorable than NexPoint Real Estate Finance.
Institutional & Insider Ownership
Risk and Volatility
ACRES Commercial Realty has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, NexPoint Real Estate Finance has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.
Profitability
This table compares ACRES Commercial Realty and NexPoint Real Estate Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ACRES Commercial Realty | 22.62% | 2.42% | 0.58% |
| NexPoint Real Estate Finance | 107.93% | 12.72% | 0.92% |
Earnings and Valuation
This table compares ACRES Commercial Realty and NexPoint Real Estate Finance”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ACRES Commercial Realty | $79.95 million | 1.30 | $21.32 million | ($1.12) | -13.04 |
| NexPoint Real Estate Finance | $89.95 million | 3.55 | $105.10 million | $2.37 | 7.16 |
NexPoint Real Estate Finance has higher revenue and earnings than ACRES Commercial Realty. ACRES Commercial Realty is trading at a lower price-to-earnings ratio than NexPoint Real Estate Finance, indicating that it is currently the more affordable of the two stocks.
Summary
NexPoint Real Estate Finance beats ACRES Commercial Realty on 11 of the 13 factors compared between the two stocks.
About ACRES Commercial Realty
ACRES Commercial Realty Corp., a real estate investment trust (REIT), focuses on the origination, holding, and management of commercial real estate mortgage loans and equity investments in commercial real estate property in the United States. It invests in commercial real estate-related assets, including floating-rate first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine financing, preferred equity investments, and commercial mortgage-backed securities. 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. 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 NexPoint Real Estate Finance
NexPoint Real Estate Finance, Inc. operates as a commercial mortgage real estate investment trust in the United States. It focuses on originating, structuring, and investing in first-lien mortgage loans, mezzanine loans, preferred equity, convertible notes, multifamily properties, and common equity investments, as well as multifamily and single-family rental commercial mortgage-backed securities securitizations, multifamily structured credit risk notes, and mortgage-backed securities or target assets. The company has elected to be taxed as a real estate investment trust (REIT) and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. NexPoint Real Estate Finance, Inc. was incorporated in 2019 and is based in Dallas, Texas.
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