Ares Commercial Real Estate (ACRE)vsAnnaly Capital Management, Inc. (NLY)
ACRE
Ares Commercial Real Estate
$4.99
-1.19%
REAL ESTATE · Cap: $273.52M
NLY
Annaly Capital Management, Inc.
$21.22
-0.24%
REAL ESTATE · Cap: $16.12B
Smart Verdict
WallStSmart Research — data-driven comparison
Annaly Capital Management, Inc. generates 4471% more annual revenue ($2.50B vs $54.71M). NLY leads profitability with a 87.4% profit margin vs -36.3%. ACRE appears more attractively valued with a PEG of 2.57. NLY earns a higher WallStSmart Score of 77/100 (B+).
ACRE
Hold38
out of 100
Grade: F
NLY
Strong Buy77
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+82.8%
Fair Value
$32.29
Current Price
$4.99
$27.30 discount
Margin of Safety
-37.9%
Fair Value
$16.54
Current Price
$21.22
$4.68 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 1598.0% YoY
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 87 of every $100 in revenue as profit
Strong operational efficiency at 81.0%
Revenue surging 48.8% year-over-year
Earnings expanding 122.5% YoY
Areas to Watch
Smaller company, higher risk/reward
Expensive relative to growth rate
ROE of -4.0% — below average capital efficiency
Revenue declined 88.6%
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ACRE
The strongest argument for ACRE centers on Price/Book, EPS Growth.
Bull Case : NLY
The strongest argument for NLY centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 87.4% and operating margin at 81.0%. Revenue growth of 48.8% demonstrates continued momentum.
Bear Case : ACRE
The primary concerns for ACRE are Market Cap, PEG Ratio, Return on Equity. Debt-to-equity of 2.58 is elevated, increasing financial risk.
Bear Case : NLY
The primary concerns for NLY are Piotroski F-Score, PEG Ratio, Free Cash Flow. Debt-to-equity of 7.18 is elevated, increasing financial risk.
Key Dynamics to Monitor
ACRE profiles as a turnaround stock while NLY is a growth play — different risk/reward profiles.
NLY carries more volatility with a beta of 1.25 — expect wider price swings.
NLY is growing revenue faster at 48.8% — sustainability is the question.
ACRE generates stronger free cash flow (-57M), providing more financial flexibility.
Bottom Line
NLY scores higher overall (77/100 vs 38/100), backed by strong 87.4% margins and 48.8% revenue growth. ACRE offers better value entry with a 82.8% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Ares Commercial Real Estate
REAL ESTATE · REIT - MORTGAGE · USA
Ares Commercial Real Estate Corporation, a specialized finance company, originates and invests in commercial real estate loans (CRE) and related investments in the United States. The company is headquartered in New York, New York.
Annaly Capital Management, Inc.
REAL ESTATE · REIT - MORTGAGE · USA
Annaly Capital Management, Inc., a diversified capital manager, invests in and finances residential and commercial assets. The company is headquartered in New York, New York.
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