Annaly Capital Management Inc. (NYSE:NLY) and Ares Commercial Real Estate Corporation (NYSE:ACRE) have been rivals in the REIT - Diversified for quite some time. Below is a review of each business including various aspects such as analyst recommendations, profitability, risk, institutional ownership, dividends, earnings and valuation.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Annaly Capital Management Inc. | 10 | -12.44 | N/A | -1.59 | 0.00 |
| Ares Commercial Real Estate Corporation | 15 | 6.83 | N/A | 1.32 | 11.43 |
Table 1 demonstrates Annaly Capital Management Inc. and Ares Commercial Real Estate Corporation’s gross revenue, earnings per share and valuation.
Profitability
Table 2 demonstrates the return on assets, net margins and return on equity of Annaly Capital Management Inc. and Ares Commercial Real Estate Corporation.
| Net Margins | Return on Equity | Return on Assets | |
| Annaly Capital Management Inc. | 0.00% | -17.5% | -2.1% |
| Ares Commercial Real Estate Corporation | 0.00% | 8.9% | 2.2% |
Risk and Volatility
A 0.35 beta indicates that Annaly Capital Management Inc. is 65.00% less volatile compared to Standard and Poor’s 500. Ares Commercial Real Estate Corporation’s 32.00% less volatile than Standard and Poor’s 500 volatility due to the stock’s 0.68 beta.
Analyst Ratings
Annaly Capital Management Inc. and Ares Commercial Real Estate Corporation Ratings and Recommendations are available in the next table.
| Sell Ratings | Hold Ratings | Buy Ratings | Rating Score | |
| Annaly Capital Management Inc. | 0 | 0 | 4 | 3.00 |
| Ares Commercial Real Estate Corporation | 0 | 1 | 1 | 2.50 |
The consensus price target of Annaly Capital Management Inc. is $10.38, with potential upside of 8.13%. Ares Commercial Real Estate Corporation on the other hand boasts of a $15.5 consensus price target and a 2.04% potential upside. Based on the data shown earlier, Annaly Capital Management Inc. is looking more favorable than Ares Commercial Real Estate Corporation, analysts belief.
Insider & Institutional Ownership
Annaly Capital Management Inc. and Ares Commercial Real Estate Corporation has shares held by institutional investors as follows: 53.8% and 63.9%. Annaly Capital Management Inc.’s share held by insiders are 0.3%. Competitively, Ares Commercial Real Estate Corporation has 1.1% of it’s share held by insiders.
Performance
Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.
| Performance (W) | Performance (M) | Performance (Q) | Performance (HY) | Performance (Y) | Performance (YTD) | |
| Annaly Capital Management Inc. | -0.94% | -4.89% | -8.19% | -5.27% | -8.72% | -2.95% |
| Ares Commercial Real Estate Corporation | 1.35% | -2.33% | 6.28% | 3.36% | 12.14% | 15.49% |
For the past year Annaly Capital Management Inc. had bearish trend while Ares Commercial Real Estate Corporation had bullish trend.
Summary
Ares Commercial Real Estate Corporation beats Annaly Capital Management Inc. on 7 of the 9 factors.
Annaly Capital Management, Inc. owns a portfolio of real estate related investments in the United States. The company invests in various types of agency mortgage-backed securities and related derivatives to hedge these investments; and residential credit investments, such as residential mortgage loans and non-agency mortgage-backed assets within securitized products. It also originates and invests in commercial mortgage loans, securities, and other commercial real estate investments; lends customized debt financing to middle-market businesses; and operates as a broker-dealer. The company has elected to be taxed as a real estate investment trust (REIT). As a REIT, it is not subject to federal income tax to the extent that it distributes its taxable income to its shareholders. Annaly Capital Management, Inc. was founded in 1997 and is based in New York, New York.
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