Analyzing ACRES Commercial Realty (NYSE:ACR) and Chicago Atlantic Real Estate Finance (NASDAQ:REFI)

Chicago Atlantic Real Estate Finance (NASDAQ:REFIGet Rating) and ACRES Commercial Realty (NYSE:ACRGet Rating) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, dividends, risk and earnings.

Valuation & Earnings

This table compares Chicago Atlantic Real Estate Finance and ACRES Commercial Realty’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chicago Atlantic Real Estate Finance N/A N/A N/A N/A N/A
ACRES Commercial Realty $50.08 million 1.78 $33.92 million $0.47 20.87

ACRES Commercial Realty has higher revenue and earnings than Chicago Atlantic Real Estate Finance.

Analyst Recommendations

This is a breakdown of current recommendations for Chicago Atlantic Real Estate Finance and ACRES Commercial Realty, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chicago Atlantic Real Estate Finance 0 0 4 0 3.00
ACRES Commercial Realty 0 0 2 0 3.00

Chicago Atlantic Real Estate Finance presently has a consensus price target of $22.25, suggesting a potential upside of 46.00%. ACRES Commercial Realty has a consensus price target of $19.50, suggesting a potential upside of 98.78%. Given ACRES Commercial Realty’s higher probable upside, analysts plainly believe ACRES Commercial Realty is more favorable than Chicago Atlantic Real Estate Finance.

Profitability

This table compares Chicago Atlantic Real Estate Finance and ACRES Commercial Realty’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chicago Atlantic Real Estate Finance N/A N/A N/A
ACRES Commercial Realty 37.47% 0.75% 0.16%

Insider and Institutional Ownership

17.4% of Chicago Atlantic Real Estate Finance shares are owned by institutional investors. Comparatively, 42.7% of ACRES Commercial Realty shares are owned by institutional investors. 2.8% of ACRES Commercial Realty shares are owned by 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.

Summary

ACRES Commercial Realty beats Chicago Atlantic Real Estate Finance on 7 of the 8 factors compared between the two stocks.

Chicago Atlantic Real Estate Finance Company Profile (Get Rating)

Chicago Atlantic Real Estate Finance, Inc. operates as a commercial real estate finance company in the United States. It originates, structures, and invests in first mortgage loans and alternative structured financings secured by commercial real estate properties. The company offers senior loans to state-licensed operators and property owners in the cannabis industry. It 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. The company was incorporated in 2021 and is based in Chicago, Illinois.

ACRES Commercial Realty Company Profile (Get Rating)

ACRES Commercial Realty Corp., a real estate investment trust (REIT), focuses on the origination, holding, and management of commercial real estate mortgage loans and other commercial real estate-related debt investments in the United States. It invests in commercial real estate-related assets, including floating and fixed rate first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine debt, preferred equity investments, commercial mortgage-backed securities, and commercial real estate equity and preferred equity 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 tax to the extent that it distributes 100% of its REIT taxable income. 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.

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