Ares Commercial Real Estate Corporation (ACRE) vs Great Ajax Corp. (RPT)

Ares Commercial Real Estate Corporation and Great Ajax Corp. are both Reit Mortgage companies. Ares Commercial Real Estate Corporation is the larger, with a market value of $188.6M against $87.8M — 2.1× the size. Ares Commercial Real Estate Corporation has negative trailing earnings, so its P/E is not meaningful; Great Ajax Corp. trades at 73.7×. Ares Commercial Real Estate Corporation grew revenue faster over the last twelve months: −10.6% against −74.3%. Great Ajax Corp. has the higher net margin (7.05% vs −8.04%) and the lower return on invested capital (0.49% vs 0.65%). Across the 18 metrics below, Ares Commercial Real Estate Corporation leads on 9 and Great Ajax Corp. on 9.

Valuation

Metric ACRE RPT Reit Mortgage median
P/E n/m 73.67 14.55
P/S 3.42 5.07 1.72
P/B 0.39 0.37 0.52
Price to free cash flow 10.49 n/m 4.35
EV/EBITDA 63.42 79.39 28.27
EV/Sales 26.16 35.01 15.73
Earnings yield (2.35%) 1.36% 0.23%
Free cash flow yield 9.53% (13.25%) 13.86%

Profitability

Metric ACRE RPT Reit Mortgage median
Gross margin 100.00% 100.00% 100.00%
Operating margin 31.94% 36.21% 31.94%
Net margin (8.04%) 7.05% (1.81%)
Free cash flow margin 32.64% (67.15%) 27.05%
Return on equity (0.88%) 0.51% (0.49%)
Return on assets (0.27%) 0.12% (0.06%)
Return on invested capital 0.65% 0.49% 0.79%

Growth

Metric ACRE RPT Reit Mortgage median
Revenue growth (TTM) (10.60%) (74.29%) 1.39%
EPS growth (last fiscal year) 96.88% 97.38% 45.25%
Revenue growth, 5-year CAGR (7.89%) (24.69%) 14.60%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ACRE RPT Reit Mortgage median
Debt to equity 2.58 1.95 2.91
Current ratio 0.00 0.85 0.82
Net debt to EBITDA 44.04 181.49 18.31

Dividend

Metric ACRE RPT Reit Mortgage median
Dividend yield 17.60% — 17.37%
Payout ratio — — 1.87

Size

Metric ACRE RPT Reit Mortgage median
Market cap 188.64m 87.80m 409.49m

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