ACRES Commercial Realty (NYSE:ACR – Get Rating) and Modiv (NYSE:MDV – Get Rating) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.
Profitability
This table compares ACRES Commercial Realty and Modiv's net margins, return on equity and return on assets.
Get ACRES Commercial Realty alerts:| Net Margins | Return on Equity | Return on Assets | |
| ACRES Commercial Realty | 30.43% | 4.12% | 0.80% |
| Modiv | -16.33% | -2.64% | -1.41% |
Institutional and Insider Ownership
23.6% of ACRES Commercial Realty shares are held by institutional investors. Comparatively, 6.2% of Modiv shares are held by institutional investors. 3.0% of ACRES Commercial Realty shares are held by insiders. Comparatively, 4.2% of Modiv shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and recommmendations for ACRES Commercial Realty and Modiv, as reported by MarketBeat.| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ACRES Commercial Realty | 0 | 0 | 1 | 0 | 3.00 |
| Modiv | 0 | 0 | 6 | 0 | 3.00 |
ACRES Commercial Realty presently has a consensus price target of $14.00, indicating a potential upside of 40.56%. Modiv has a consensus price target of $19.30, indicating a potential upside of 65.67%. Given Modiv's higher probable upside, analysts clearly believe Modiv is more favorable than ACRES Commercial Realty.
Valuation & Earnings
This table compares ACRES Commercial Realty and Modiv's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ACRES Commercial Realty | $50.08 million | 1.74 | $33.92 million | $0.62 | 16.06 |
| Modiv | $36.22 million | 2.40 | -$440,000.00 | ($1.39) | -8.38 |
ACRES Commercial Realty has higher revenue and earnings than Modiv. Modiv 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.
Summary
ACRES Commercial Realty beats Modiv on 8 of the 12 factors compared between the two stocks.
About ACRES Commercial Realty
(Get Rating)
ACRES Commercial Realty Corp., a real estate investment trust (REIT), focuses on the origination, holding, and management of commercial real estate mortgage loans and other commercial real estate-related debt investments in the United States. It invests in commercial real estate-related assets, including floating and fixed rate first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine debt, preferred equity investments, commercial mortgage-backed securities, and commercial real estate equity and preferred equity investments. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income. 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 Modiv
(Get Rating)
Modiv Inc., (the Company) was incorporated on May 14, 2015 as a Maryland corporation. The Company was formed to primarily invest, directly or indirectly, in real estate owning entities which own single-tenant income-producing properties located in the United States, which are leased to creditworthy tenants under long-term net leases. The Company's goal is to generate current income for investors and long-term capital appreciation in the value of its properties.
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