ACRES Commercial Realty (NYSE:ACR – Get Free Report) and Rithm Capital (NYSE:RITM – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.
Profitability
This table compares ACRES Commercial Realty and Rithm Capital’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% |
| Rithm Capital | 9.20% | 19.86% | 2.84% |
Insider and Institutional Ownership
40.0% of ACRES Commercial Realty shares are owned by institutional investors. Comparatively, 44.9% of Rithm Capital shares are owned by institutional investors. 4.6% of ACRES Commercial Realty shares are owned by insiders. Comparatively, 0.6% of Rithm Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Analyst Recommendations
This is a breakdown of current ratings and target prices for ACRES Commercial Realty and Rithm Capital, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ACRES Commercial Realty | 1 | 1 | 2 | 0 | 2.25 |
| Rithm Capital | 1 | 0 | 10 | 0 | 2.82 |
ACRES Commercial Realty currently has a consensus target price of $24.50, indicating a potential upside of 66.44%. Rithm Capital has a consensus target price of $13.15, indicating a potential upside of 28.80%. Given ACRES Commercial Realty’s higher possible upside, research analysts plainly believe ACRES Commercial Realty is more favorable than Rithm Capital.
Valuation & Earnings
This table compares ACRES Commercial Realty and Rithm Capital”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ACRES Commercial Realty | $79.95 million | 1.31 | $21.32 million | ($1.12) | -13.14 |
| Rithm Capital | $4.59 billion | 1.24 | $681.45 million | $0.60 | 17.02 |
Rithm Capital has higher revenue and earnings than ACRES Commercial Realty. ACRES Commercial Realty is trading at a lower price-to-earnings ratio than Rithm Capital, indicating that it is currently the more affordable of the two stocks.
Summary
Rithm Capital beats ACRES Commercial Realty on 10 of the 14 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 Rithm Capital
Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. 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 New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based in New York, New York.
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