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AAT vs ARI

AAT
American Assets Trust, Inc.
BEARISH
Price
$17.98
Market Cap
$1.39B
Sector
Real Estate
AI Confidence
85%
ARI
Apollo Commercial Real Estate Finance, Inc.
BEARISH
Price
$9.92
Market Cap
$1.38B
Sector
Real Estate
AI Confidence
72%

Valuation

P/E Ratio
AAT
17.8
ARI
11.4
Forward P/E
AAT
24.97
ARI
10.63
P/B Ratio
AAT
0.94
ARI
0.74
P/S Ratio
AAT
3.2
ARI
5.12
EV/EBITDA
AAT
11.25
ARI
--

Profitability

Gross Margin
AAT
62.81%
ARI
69.75%
Operating Margin
AAT
22.83%
ARI
44.81%
Profit Margin
AAT
14.13%
ARI
51.31%
ROE
AAT
6.99%
ARI
7.41%
ROA
AAT
2.14%
ARI
1.48%

Growth

Revenue Growth
AAT
-10.8%
ARI
-6.2%
Earnings Growth
AAT
-73.0%
ARI
--

Financial Health

Debt/Equity
AAT
1.53
ARI
4.06
Current Ratio
AAT
3.5
ARI
9.46
Quick Ratio
AAT
3.33
ARI
9.43

Dividends

Dividend Yield
AAT
7.51%
ARI
10.01%
Payout Ratio
AAT
132.84%
ARI
113.64%

AI Verdict

AAT BEARISH

The Advanced Deterministic Scorecard reveals a weak financial health profile with a Piotroski F-Score of 4/9, indicating borderline stability, and a concerning lack of Altman Z-Score data, which raises transparency risks. Despite a high dividend yield of 7.51%, the payout ratio of 132.84% is unsustainable, supported by collapsing earnings—YoY EPS down 75% and revenue down 10.8%. Valuation metrics are mixed, with a Price/Book below 1 but a high Forward P/E of 24.97, while technical and analyst signals are uniformly bearish. The company has underperformed peers over 1Y, 3Y, and 5Y, with no insider buying and weak earnings consistency in recent quarters.

Strengths
Dividend yield is high at 7.51%, potentially attractive for income-seeking investors
Price/Book ratio of 0.94 suggests the stock trades below book value
Current and quick ratios are strong at 3.50 and 3.33, indicating solid short-term liquidity
Risks
Piotroski F-Score of 4/9 indicates weak financial health and poor earnings stability
Earnings have collapsed—YoY EPS down 73%, with Q/Q EPS down 72.9%, signaling severe profitability deterioration
Payout ratio of 132.84% is unsustainable and likely to lead to dividend cuts
ARI BEARISH

The Advanced Deterministic Scorecard reveals a weak financial health profile with a Piotroski F-Score of 4/9, indicating borderline stability, and a concerning lack of Altman Z-Score data, which raises transparency risks. Despite a high dividend yield of 10.01%, the payout ratio of 113.64% is unsustainable, supported by declining earnings and negative revenue growth. Profitability margins appear strong on the surface but are misleading due to the company's high leverage (Debt/Equity: 4.06) and volatile earnings, including multiple large negative EPS surprises. Insider selling, bearish technicals, and a deteriorating earnings trend further undermine the bullish analyst recommendation and target price premium.

Strengths
High dividend yield of 10.01% offers attractive income potential
Price/Book ratio of 0.74 suggests the stock trades below book value
Strong gross and operating margins (69.75% and 44.81%) indicate pricing power or low cost structure
Risks
Piotroski F-Score of 4 indicates weak financial health and poor earnings stability
Debt/Equity ratio of 4.06 is extremely high, increasing default and refinancing risk
Dividend payout ratio of 113.64% is unsustainable and likely to be cut

Compare Another Pair

AAT vs ARI: Head-to-Head Comparison

This page compares American Assets Trust, Inc. (AAT) and Apollo Commercial Real Estate Finance, Inc. (ARI) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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