ACRES Commercial Realty (NYSE:ACR – Get Free Report) and AGNC Investment (NASDAQ:AGNC – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.
Volatility & Risk
ACRES Commercial Realty has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, AGNC Investment has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.
Valuation and Earnings
This table compares ACRES Commercial Realty and AGNC Investment”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ACRES Commercial Realty | $83.49 million | 1.70 | $29.27 million | $0.96 | 20.23 |
| AGNC Investment | $1.80 billion | 7.26 | $863.00 million | $1.40 | 8.69 |
AGNC Investment has higher revenue and earnings than ACRES Commercial Realty. AGNC Investment is trading at a lower price-to-earnings ratio than ACRES Commercial Realty, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for ACRES Commercial Realty and AGNC Investment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ACRES Commercial Realty | 0 | 3 | 3 | 0 | 2.50 |
| AGNC Investment | 0 | 6 | 5 | 0 | 2.45 |
ACRES Commercial Realty presently has a consensus target price of $24.50, indicating a potential upside of 26.16%. AGNC Investment has a consensus target price of $10.41, indicating a potential downside of 14.49%. Given ACRES Commercial Realty’s stronger consensus rating and higher possible upside, analysts clearly believe ACRES Commercial Realty is more favorable than AGNC Investment.
Insider and Institutional Ownership
40.0% of ACRES Commercial Realty shares are held by institutional investors. Comparatively, 38.3% of AGNC Investment shares are held by institutional investors. 3.9% of ACRES Commercial Realty shares are held by company insiders. Comparatively, 0.4% of AGNC Investment shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares ACRES Commercial Realty and AGNC Investment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ACRES Commercial Realty | 35.16% | 4.74% | 1.16% |
| AGNC Investment | 47.40% | 19.13% | 1.66% |
Summary
AGNC Investment beats ACRES Commercial Realty on 9 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 AGNC Investment
AGNC Investment Corp., formerly American Capital Agency Corp., is a real estate investment trust. The Company invests in agency residential mortgage-backed securities on a leveraged basis. Its investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) for which the principal and interest payments are guaranteed by a government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) (collectively, GSEs). Its agency securities include agency residential mortgage-backed securities (Agency RMBS) and to-be-announced forward contracts (TBAs). Its Non-Agency Securities include credit risk transfer securities (CRT), non-agency residential mortgage-backed securities (Non-Agency RMBS) and commercial mortgage-backed securities (CMBS).
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