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

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

Analyst Recommendations

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

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

ACRES Commercial Realty currently has a consensus price target of $24.50, indicating a potential upside of 29.97%. Annaly Capital Management has a consensus price target of $23.78, indicating a potential upside of 11.24%. Given ACRES Commercial Realty’s higher possible upside, research analysts plainly believe ACRES Commercial Realty is more favorable than Annaly Capital Management.

Volatility and Risk

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

Earnings and Valuation

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

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

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.

Profitability

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

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

Insider and Institutional Ownership

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