Ares Commercial Real Estate Corporation (ACRE) vs Ready Capital Corp (RC)

Ares Commercial Real Estate Corporation and Ready Capital Corp are both Reit Mortgage companies. Ares Commercial Real Estate Corporation and Ready Capital Corp are of similar size ($241.4M and $229.6M). Ares Commercial Real Estate Corporation grew revenue faster over the last twelve months: −10.6% against −43.0%. Ares Commercial Real Estate Corporation has the higher net margin (−8.04% vs −134.1%) and the lower return on invested capital (0.65% vs 6.29%). Both pay a dividend; Ready Capital Corp yields more (16.7% vs 15.7%). Across the 20 metrics below, Ready Capital Corp leads on 14 and Ares Commercial Real Estate Corporation on 6.

Valuation

Metric ACRE RC Reit Mortgage median
P/E n/m n/m 7.80
P/S 4.21 0.53 1.90
P/B 0.47 0.18 0.61
Price to free cash flow 12.89 0.18 5.90
EV/EBITDA 103.15 6.48 28.40
EV/Sales 42.55 7.42 16.02
Earnings yield (1.91%) (257.04%) 7.68%
Free cash flow yield 7.76% 560.11% 11.60%

Profitability

Metric ACRE RC Reit Mortgage median
Gross margin 100.00% 100.00% 100.00%
Operating margin 31.94% 101.42% 35.40%
Net margin (8.04%) (134.14%) 11.85%
Free cash flow margin 32.64% 297.03% 26.68%
Return on equity (0.88%) (37.06%) 4.81%
Return on assets (0.27%) (7.25%) 0.62%
Return on invested capital 0.65% 6.29% 1.22%

Growth

Metric ACRE RC Reit Mortgage median
Revenue growth (TTM) (10.60%) (43.02%) 4.70%
EPS growth (last fiscal year) 96.88% 45.25% —
Revenue growth, 5-year CAGR (7.89%) 17.09% 14.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ACRE RC Reit Mortgage median
Debt to equity 2.58 2.29 3.30
Current ratio 0.00 1.91 1.00
Net debt to EBITDA 44.04 6.30 18.31

Dividend

Metric ACRE RC Reit Mortgage median
Dividend yield 15.70% 16.73% 13.05%
Payout ratio 1.48 0.58 1.24

Size

Metric ACRE RC Reit Mortgage median
Market cap 241.35m 229.62m 517.48m

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