ACRES Commercial Realty Corp. (ACR) vs NexPoint Real Estate Finance, Inc. (NREF)

ACRES Commercial Realty Corp. and NexPoint Real Estate Finance, Inc. are both Reit Mortgage companies. NexPoint Real Estate Finance, Inc. is the larger, with a market value of $256.2M against $176.4M — 1.5× the size. ACRES Commercial Realty Corp. has negative trailing earnings, so its P/E is not meaningful; NexPoint Real Estate Finance, Inc. trades at 3.9×. ACRES Commercial Realty Corp. grew revenue faster over the last twelve months: −3.37% against −5.70%. NexPoint Real Estate Finance, Inc. has the higher net margin (65.6% vs −8.40%) and the higher return on invested capital (1.31% vs 0.29%). Across the 21 metrics below, NexPoint Real Estate Finance, Inc. leads on 16 and ACRES Commercial Realty Corp. on 5.

Valuation

Metric ACR NREF Reit Mortgage median
P/E n/m 3.94 14.55
P/S 1.09 2.72 1.72
P/B 0.16 0.68 0.52
Price to free cash flow 20.57 55.24 4.35
EV/EBITDA 74.31 29.50 28.27
EV/Sales 22.89 8.40 15.73
Earnings yield (8.33%) 25.38% 0.23%
Free cash flow yield 4.86% 1.81% 13.86%

Profitability

Metric ACR NREF Reit Mortgage median
Gross margin 92.11% 100.00% 100.00%
Operating margin 13.40% 20.29% 31.94%
Net margin (8.40%) 65.64% (1.81%)
Free cash flow margin 4.11% 4.92% 27.05%
Return on equity (1.36%) 17.13% (0.49%)
Return on assets (0.32%) 1.16% (0.06%)
Return on invested capital 0.29% 1.31% 0.79%

Growth

Metric ACR NREF Reit Mortgage median
Revenue growth (TTM) (3.37%) (5.70%) 1.39%
EPS growth (last fiscal year) (97.39%) 179.41% 45.25%
Revenue growth, 5-year CAGR 9.71% 18.20% 14.60%
Net income growth, 5-year CAGR 0.00% 46.80% 0.00%

Health

Metric ACR NREF Reit Mortgage median
Debt to equity 3.24 1.79 2.91
Current ratio 108.63 163.94 0.82
Net debt to EBITDA 50.61 28.84 18.31

Dividend

Metric ACR NREF Reit Mortgage median
Dividend yield — 14.59% 17.37%
Payout ratio — 0.86 1.87

Size

Metric ACR NREF Reit Mortgage median
Market cap 176.36m 256.15m 409.49m

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