Contrasting ACRES Commercial Realty (NYSE:ACR) and Annaly Capital Management (NYSE:NLY)

Annaly Capital Management (NYSE:NLY) and ACRES Commercial Realty (NYSE:ACR) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Valuation and Earnings

This table compares Annaly Capital Management and ACRES Commercial Realty”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Annaly Capital Management	$2.24 billion	6.84	$2.03 billion	$2.78	7.69
ACRES Commercial Realty	$91.62 million	1.47	$21.32 million	$0.01	1,885.00

Annaly Capital Management has higher revenue and earnings than ACRES Commercial Realty. Annaly Capital Management 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.

Volatility & Risk

Annaly Capital Management has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, ACRES Commercial Realty has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Annaly Capital Management and ACRES Commercial Realty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Annaly Capital Management	0	4	7	1	2.75
ACRES Commercial Realty	0	2	2	0	2.50

Annaly Capital Management presently has a consensus target price of $23.78, suggesting a potential upside of 11.24%. ACRES Commercial Realty has a consensus target price of $24.50, suggesting a potential upside of 29.97%. Given ACRES Commercial Realty’s higher probable upside, analysts clearly believe ACRES Commercial Realty is more favorable than Annaly Capital Management.

Profitability

This table compares Annaly Capital Management and ACRES Commercial Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Annaly Capital Management	34.02%	15.80%	1.68%
ACRES Commercial Realty	31.78%	4.55%	1.14%

Institutional & Insider Ownership

51.6% of Annaly Capital Management shares are owned by institutional investors. Comparatively, 40.0% of ACRES Commercial Realty shares are owned by institutional investors. 0.2% of Annaly Capital Management shares are owned by insiders. Comparatively, 3.9% of ACRES Commercial Realty shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Annaly Capital Management beats ACRES Commercial Realty on 12 of the 15 factors compared between the two stocks.

About Annaly Capital Management

Annaly Capital Management, Inc., a diversified capital manager, engages in mortgage finance. The company invests in agency mortgage-backed securities collateralized by residential mortgages; non-agency residential whole loans and securitized products within the residential and commercial markets; mortgage servicing rights; agency commercial mortgage-backed securities; to-be-announced forward contracts; residential mortgage loans; and agency or private label credit risk transfer securities. It has elected to be taxed as a real estate investment trust (REIT). As a REIT, it is not subject to federal income tax to the extent that it distributes its taxable income to its shareholders. The company was incorporated in 1996 and is based in New York, New York.

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.