ACRE vs. ORC, WSR, AHH, ARI, RC, TWO, PMT, MFA, ARR, and CIM
Should you be buying Ares Commercial Real Estate stock or one of its competitors? The main competitors of Ares Commercial Real Estate include Orchid Island Capital (ORC), Whitestone REIT (WSR), Armada Hoffler Properties (AHH), Apollo Commercial Real Estate Finance (ARI), Ready Capital (RC), Two Harbors Investment (TWO), PennyMac Mortgage Investment Trust (PMT), MFA Financial (MFA), ARMOUR Residential REIT (ARR), and Chimera Investment (CIM). These companies are all part of the "finance" sector.
Ares Commercial Real Estate (NYSE:ACRE) and Orchid Island Capital (NYSE:ORC) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, community ranking, dividends, valuation, earnings, analyst recommendations, media sentiment, risk and institutional ownership.
Ares Commercial Real Estate has higher earnings, but lower revenue than Orchid Island Capital. Orchid Island Capital is trading at a lower price-to-earnings ratio than Ares Commercial Real Estate, indicating that it is currently the more affordable of the two stocks.
Ares Commercial Real Estate pays an annual dividend of $1.00 per share and has a dividend yield of 14.3%. Orchid Island Capital pays an annual dividend of $1.44 per share and has a dividend yield of 17.2%. Ares Commercial Real Estate pays out -120.5% of its earnings in the form of a dividend. Orchid Island Capital pays out -271.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Orchid Island Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
In the previous week, Orchid Island Capital had 3 more articles in the media than Ares Commercial Real Estate. MarketBeat recorded 4 mentions for Orchid Island Capital and 1 mentions for Ares Commercial Real Estate. Ares Commercial Real Estate's average media sentiment score of 1.94 beat Orchid Island Capital's score of 1.05 indicating that Ares Commercial Real Estate is being referred to more favorably in the media.
41.3% of Ares Commercial Real Estate shares are owned by institutional investors. Comparatively, 32.7% of Orchid Island Capital shares are owned by institutional investors. 2.8% of Ares Commercial Real Estate shares are owned by company insiders. Comparatively, 0.6% of Orchid Island Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Ares Commercial Real Estate currently has a consensus price target of $8.42, suggesting a potential upside of 20.07%. Orchid Island Capital has a consensus price target of $9.50, suggesting a potential upside of 13.70%. Given Ares Commercial Real Estate's higher probable upside, analysts plainly believe Ares Commercial Real Estate is more favorable than Orchid Island Capital.
Ares Commercial Real Estate received 21 more outperform votes than Orchid Island Capital when rated by MarketBeat users. However, 61.25% of users gave Orchid Island Capital an outperform vote while only 59.89% of users gave Ares Commercial Real Estate an outperform vote.
Ares Commercial Real Estate has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, Orchid Island Capital has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500.
Orchid Island Capital has a net margin of 0.00% compared to Ares Commercial Real Estate's net margin of -54.60%. Ares Commercial Real Estate's return on equity of 0.84% beat Orchid Island Capital's return on equity.
Summary
Ares Commercial Real Estate and Orchid Island Capital tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ACRE and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
Ares Commercial Real Estate Competitors List
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