Ares Commercial Real Estate (ACRE)vsWelltower Inc (WELL)
ACRE
Ares Commercial Real Estate
$3.36
-1.75%
REAL ESTATE · Cap: $186.42M
WELL
Welltower Inc
$234.60
+0.61%
REAL ESTATE · Cap: $172.10B
Smart Verdict
WallStSmart Research — data-driven comparison
Welltower Inc generates 38768% more annual revenue ($13.79B vs $35.49M). WELL leads profitability with a 12.1% profit margin vs -12.5%. ACRE appears more attractively valued with a PEG of 2.57. WELL earns a higher WallStSmart Score of 57/100 (C).
ACRE
Hold48
out of 100
Grade: D+
WELL
Buy57
out of 100
Grade: C
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
-73.7%
Fair Value
$135.10
Current Price
$234.60
$99.50 premium
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
Revenue surging 38.4% year-over-year
Large-cap with strong market position
Earnings expanding 30.3% YoY
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%
ROE of 2.9% — below average capital efficiency
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 : WELL
The strongest argument for WELL centers on Revenue Growth, Market Cap, EPS Growth. Revenue growth of 38.4% 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 : WELL
The primary concerns for WELL are Return on Equity, PEG Ratio, P/E Ratio. A P/E of 99.4x 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 38.4% — sustainability is the question.
WELL generates stronger free cash flow (881M), providing more financial flexibility.
Bottom Line
WELL scores higher overall (57/100 vs 48/100) and 38.4% revenue growth. ACRE offers better value entry with a 72.1% 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.
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