Claros Mortgage Trust (NYSE:CMTG – Get Free Report) and Ares Commercial Real Estate (NYSE:ACRE – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.
Valuation and Earnings
This table compares Claros Mortgage Trust and Ares Commercial Real Estate”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Claros Mortgage Trust | $187.83 million | 1.22 | -$489.07 million | ($3.83) | -0.43 |
| Ares Commercial Real Estate | $52.91 million | 4.90 | -$900,000.00 | ($0.08) | -58.38 |
Insider & Institutional Ownership
89.5% of Claros Mortgage Trust shares are owned by institutional investors. Comparatively, 41.3% of Ares Commercial Real Estate shares are owned by institutional investors. 2.6% of Claros Mortgage Trust shares are owned by company insiders. Comparatively, 2.3% of Ares Commercial Real Estate shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Claros Mortgage Trust has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Ares Commercial Real Estate has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Claros Mortgage Trust and Ares Commercial Real Estate, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Claros Mortgage Trust | 3 | 1 | 0 | 0 | 1.25 |
| Ares Commercial Real Estate | 2 | 4 | 1 | 0 | 1.86 |
Claros Mortgage Trust presently has a consensus price target of $2.22, indicating a potential upside of 35.99%. Ares Commercial Real Estate has a consensus price target of $5.25, indicating a potential upside of 12.42%. Given Claros Mortgage Trust’s higher probable upside, equities analysts plainly believe Claros Mortgage Trust is more favorable than Ares Commercial Real Estate.
Profitability
This table compares Claros Mortgage Trust and Ares Commercial Real Estate’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Claros Mortgage Trust | -354.13% | -19.70% | -6.52% |
| Ares Commercial Real Estate | -8.04% | 4.08% | 1.23% |
Summary
Ares Commercial Real Estate beats Claros Mortgage Trust on 8 of the 14 factors compared between the two stocks.
About Claros Mortgage Trust
Claros Mortgage Trust, Inc. operates as a real estate investment trust. It focuses on originating senior and subordinate loans on transitional commercial real estate assets in the United States. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was incorporated in 2015 and is headquartered in New York, New York.
About Ares Commercial Real Estate
Ares Commercial Real Estate Corporation, a specialty finance company, originates and invests in commercial real estate (CRE) loans and related investments in the United States. It provides a range of financing solutions for the owners, operators, and sponsors of CRE properties. The company originates senior mortgage loans, subordinate debt and preferred equity products, mezzanine loans, and other CRE investments, including commercial mortgage-backed securities. It has elected and qualified to be taxed as a real estate investment trust for the United States federal income tax purposes under the Internal Revenue Code of 1986. Ares Commercial Real Estate Corporation was incorporated in 2011 and is based in New York, New York.
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