Head to Head Review: Manhattan Bridge Capital (NASDAQ:LOAN) versus ACRES Commercial Realty (NYSE:ACR)

Manhattan Bridge Capital (NASDAQ:LOAN) and ACRES Commercial Realty (NYSE:ACR) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Manhattan Bridge Capital	58.30%	11.02%	7.59%
ACRES Commercial Realty	22.62%	2.42%	0.58%

Risk & Volatility

Manhattan Bridge Capital has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500. Comparatively, ACRES Commercial Realty has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Manhattan Bridge Capital and ACRES Commercial Realty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Manhattan Bridge Capital	0	2	0	0	2.00
ACRES Commercial Realty	1	1	2	0	2.25

ACRES Commercial Realty has a consensus price target of $24.50, indicating a potential upside of 139.44%. Given ACRES Commercial Realty’s stronger consensus rating and higher probable upside, analysts clearly believe ACRES Commercial Realty is more favorable than Manhattan Bridge Capital.

Valuation and Earnings

This table compares Manhattan Bridge Capital and ACRES Commercial Realty”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Manhattan Bridge Capital	$6.60 million	6.11	$5.11 million	$0.42	8.40
ACRES Commercial Realty	$79.95 million	0.91	$21.32 million	($1.12)	-9.14

ACRES Commercial Realty has higher revenue and earnings than Manhattan Bridge Capital. ACRES Commercial Realty is trading at a lower price-to-earnings ratio than Manhattan Bridge Capital, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

21.8% of Manhattan Bridge Capital shares are owned by institutional investors. Comparatively, 40.0% of ACRES Commercial Realty shares are owned by institutional investors. 24.6% of Manhattan Bridge Capital shares are owned by insiders. Comparatively, 4.6% of ACRES Commercial Realty 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.

About Manhattan Bridge Capital

Manhattan Bridge Capital, Inc., a real estate finance company, originates, services, and manages a portfolio of first mortgage loans in the United States. The company offers short-term, secured, and non-banking loans to real estate investors to fund acquisition, renovation, rehabilitation, or development of residential or commercial properties. Its loans are secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers. 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 founded in 1989 and is headquartered in Great Neck, 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.