Ares Commercial Real Estate (ACRE)vsRithm Capital Corp. (RITM)
ACRE
Ares Commercial Real Estate
$3.36
-1.75%
REAL ESTATE · Cap: $186.42M
RITM
Rithm Capital Corp.
$9.31
-0.96%
REAL ESTATE · Cap: $5.18B
Smart Verdict
WallStSmart Research — data-driven comparison
Rithm Capital Corp. generates 13111% more annual revenue ($4.69B vs $35.49M). RITM leads profitability with a 10.6% profit margin vs -12.5%. RITM earns a higher WallStSmart Score of 67/100 (B-).
ACRE
Hold48
out of 100
Grade: D+
RITM
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+72.1%
Fair Value
$19.99
Current Price
$3.36
$16.63 discount
Margin of Safety
+84.5%
Fair Value
$68.79
Current Price
$9.31
$59.48 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 33.5%
Earnings expanding 1598.0% YoY
Reasonable price relative to book value
Strong operational efficiency at 39.5%
Revenue surging 39.4% year-over-year
Attractively priced relative to earnings
Areas to Watch
Smaller company, higher risk/reward
Expensive relative to growth rate
ROE of -4.0% — below average capital efficiency
Revenue declined 58.8%
Weak financial health signals
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ACRE
The strongest argument for ACRE centers on Price/Book, Operating Margin, EPS Growth.
Bull Case : RITM
The strongest argument for RITM centers on Price/Book, Operating Margin, Revenue Growth. Revenue growth of 39.4% 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 : RITM
The primary concerns for RITM are Piotroski F-Score, Altman Z-Score.
Key Dynamics to Monitor
ACRE profiles as a turnaround stock while RITM is a growth play — different risk/reward profiles.
ACRE carries more volatility with a beta of 1.25 — expect wider price swings.
RITM is growing revenue faster at 39.4% — sustainability is the question.
RITM generates stronger free cash flow (172M), providing more financial flexibility.
Bottom Line
RITM scores higher overall (67/100 vs 48/100) and 39.4% revenue growth. ACRE offers better value entry with a 72.1% 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.
Rithm Capital Corp.
REAL ESTATE · REIT - MORTGAGE · USA
Rhythm Capital Corp. The company is headquartered in New York, New York.
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