WallStSmart

Ares Commercial Real Estate (ACRE)vsWelltower Inc (WELL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Welltower Inc generates 16090% more annual revenue ($11.77B vs $72.68M). WELL leads profitability with a 12.0% profit margin vs -1.2%. ACRE appears more attractively valued with a PEG of 2.57. WELL earns a higher WallStSmart Score of 57/100 (C).

ACRE

Hold

41

out of 100

Grade: D

Growth: 4.7Profit: 2.0Value: 5.7Quality: 3.8
Piotroski: 4/9Altman Z: -0.23

WELL

Buy

57

out of 100

Grade: C

Growth: 10.0Profit: 5.5Value: 2.0Quality: 6.5
Piotroski: 4/9Altman Z: 1.20
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACREUndervalued (+87.7%)

Margin of Safety

+87.7%

Fair Value

$45.34

Current Price

$5.18

$40.16 discount

UndervaluedFair: $45.34Overvalued
WELLSignificantly Overvalued (-58.0%)

Margin of Safety

-58.0%

Fair Value

$131.57

Current Price

$217.34

$85.77 premium

UndervaluedFair: $131.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACRE2 strengths · Avg: 10.0/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

EPS GrowthGrowth
1598.0%10/10

Earnings expanding 1598.0% YoY

WELL3 strengths · Avg: 9.7/10
Revenue GrowthGrowth
38.3%10/10

Revenue surging 38.3% year-over-year

EPS GrowthGrowth
162.6%10/10

Earnings expanding 162.6% YoY

Market CapQuality
$153.42B9/10

Large-cap with strong market position

Areas to Watch

ACRE4 concerns · Avg: 2.3/10
Market CapQuality
$286.81M3/10

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%

WELL4 concerns · Avg: 2.3/10
Return on EquityProfitability
3.7%3/10

ROE of 3.7% — below average capital efficiency

PEG RatioValuation
3.662/10

Expensive relative to growth rate

P/E RatioValuation
105.5x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.202/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ACRE

The strongest argument for ACRE centers on Price/Book, EPS Growth.

Bull Case : WELL

The strongest argument for WELL centers on Revenue Growth, EPS Growth, Market Cap. Revenue growth of 38.3% 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 : WELL

The primary concerns for WELL are Return on Equity, PEG Ratio, P/E Ratio. A P/E of 105.5x leaves little room for execution misses.

Key Dynamics to Monitor

ACRE profiles as a turnaround stock while WELL is a growth play — different risk/reward profiles.

ACRE carries more volatility with a beta of 1.25 — expect wider price swings.

WELL is growing revenue faster at 38.3% — sustainability is the question.

WELL generates stronger free cash flow (647M), providing more financial flexibility.

Bottom Line

WELL scores higher overall (57/100 vs 41/100) and 38.3% revenue growth. ACRE offers better value entry with a 87.7% margin of safety. Both earn "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.

Welltower Inc

REAL ESTATE · REIT - HEALTHCARE FACILITIES · USA

Welltower Inc. is a real estate investment trust that invests in healthcare infrastructure.

Visit Website →

Want to dig deeper into these stocks?