Ares Commercial Real Estate Corporation (ACRE) vs TPG Mortgage Investment Trust Inc. (MITT)

Ares Commercial Real Estate Corporation and TPG Mortgage Investment Trust Inc. are both Reit Mortgage companies. Ares Commercial Real Estate Corporation is the larger, with a market value of $198.6M against $176.2M — 1.1× the size. Ares Commercial Real Estate Corporation has negative trailing earnings, so its P/E is not meaningful; TPG Mortgage Investment Trust Inc. trades at 7.2×. TPG Mortgage Investment Trust Inc. grew revenue faster over the last twelve months: 18.8% against −10.6%. TPG Mortgage Investment Trust Inc. has the higher net margin (4.47% vs −8.04%) and the higher return on invested capital (4.05% vs 0.65%). Both pay a dividend; TPG Mortgage Investment Trust Inc. yields more (17.7% vs 17.4%). Across the 19 metrics below, TPG Mortgage Investment Trust Inc. leads on 15 and Ares Commercial Real Estate Corporation on 4.

Valuation

Metric ACRE MITT Reit Mortgage median
P/E n/m 7.24 7.10
P/S 3.46 0.33 1.77
P/B 0.39 0.52 0.55
Price to free cash flow 10.61 2.11 5.36
EV/EBITDA 63.52 15.75 28.29
EV/Sales 26.20 16.06 15.90
Earnings yield (2.32%) 13.81% 8.10%
Free cash flow yield 9.42% 47.33% 13.00%

Profitability

Metric ACRE MITT Reit Mortgage median
Gross margin 100.00% 100.00% 100.00%
Operating margin 31.94% 98.41% 35.40%
Net margin (8.04%) 4.47% 11.85%
Free cash flow margin 32.64% 15.68% 26.68%
Return on equity (0.88%) 7.17% 4.81%
Return on assets (0.27%) 0.30% 0.62%
Return on invested capital 0.65% 4.05% 1.22%

Growth

Metric ACRE MITT Reit Mortgage median
Revenue growth (TTM) (10.60%) 18.75% 4.70%
EPS growth (last fiscal year) 96.88% (26.83%) 45.25%
Revenue growth, 5-year CAGR (7.89%) 45.16% 14.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ACRE MITT Reit Mortgage median
Debt to equity 2.58 13.45 3.30
Current ratio 0.00 0.00 1.00
Net debt to EBITDA 44.04 15.82 18.31

Dividend

Metric ACRE MITT Reit Mortgage median
Dividend yield 17.39% 17.72% 17.34%
Payout ratio — 1.28 1.28

Size

Metric ACRE MITT Reit Mortgage median
Market cap 198.62m 176.19m 479.53m

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