WallStSmart

Ares Commercial Real Estate (ACRE)vsAnnaly Capital Management, Inc. (NLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Annaly Capital Management, Inc. generates 3177% more annual revenue ($2.38B vs $72.68M). NLY leads profitability with a 85.1% profit margin vs -1.2%. ACRE appears more attractively valued with a PEG of 2.57. NLY earns a higher WallStSmart Score of 75/100 (B).

ACRE

Hold

41

out of 100

Grade: D

Growth: 4.0Profit: 2.0Value: 4.0Quality: 3.8
Piotroski: 4/9Altman Z: -0.23

NLY

Strong Buy

75

out of 100

Grade: B

Growth: 9.3Profit: 7.5Value: 7.3Quality: 2.5
Piotroski: 3/9Altman Z: -0.56
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ACRE.

NLYUndervalued (+83.2%)

Margin of Safety

+83.2%

Fair Value

$135.72

Current Price

$21.41

$114.31 discount

UndervaluedFair: $135.72Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACRE1 strengths · Avg: 10.0/10
Price/BookValuation
0.5x10/10

Reasonable price relative to book value

NLY6 strengths · Avg: 10.0/10
P/E RatioValuation
7.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Profit MarginProfitability
85.1%10/10

Keeps 85 of every $100 in revenue as profit

Operating MarginProfitability
93.7%10/10

Strong operational efficiency at 93.7%

Revenue GrowthGrowth
113.9%10/10

Revenue surging 113.9% year-over-year

EPS GrowthGrowth
81.1%10/10

Earnings expanding 81.1% YoY

Areas to Watch

ACRE4 concerns · Avg: 2.3/10
Market CapQuality
$260.23M3/10

Smaller company, higher risk/reward

PEG RatioValuation
2.572/10

Expensive relative to growth rate

Return on EquityProfitability
-0.2%2/10

ROE of -0.2% — below average capital efficiency

Revenue GrowthGrowth
-81.7%2/10

Revenue declined 81.7%

NLY4 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
32.032/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-0.562/10

Distress zone — elevated risk

Debt/EquityHealth
6.951/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : ACRE

The strongest argument for ACRE centers on Price/Book.

Bull Case : NLY

The strongest argument for NLY centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 85.1% and operating margin at 93.7%. Revenue growth of 113.9% demonstrates continued momentum.

Bear Case : ACRE

The primary concerns for ACRE are Market Cap, PEG Ratio, Return on Equity. Debt-to-equity of 2.06 is elevated, increasing financial risk.

Bear Case : NLY

The primary concerns for NLY are Piotroski F-Score, PEG Ratio, Altman Z-Score. Debt-to-equity of 6.95 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 1.30 — expect wider price swings.

NLY is growing revenue faster at 113.9% — sustainability is the question.

NLY generates stronger free cash flow (472M), providing more financial flexibility.

Bottom Line

NLY scores higher overall (75/100 vs 41/100), backed by strong 85.1% margins and 113.9% revenue growth. 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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