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ACRE vs ARL

ACRE
Ares Commercial Real Estate Corporation
BEARISH
Price
$4.85
Market Cap
$266.9M
Sector
Real Estate
AI Confidence
85%
ARL
American Realty Investors, Inc.
BEARISH
Price
$16.66
Market Cap
$269.1M
Sector
Real Estate
AI Confidence
85%

Valuation

P/E Ratio
ACRE
--
ARL
47.6
Forward P/E
ACRE
33.21
ARL
--
P/B Ratio
ACRE
0.51
ARL
0.44
P/S Ratio
ACRE
3.04
ARL
5.48
EV/EBITDA
ACRE
--
ARL
103.59

Profitability

Gross Margin
ACRE
100.0%
ARL
45.21%
Operating Margin
ACRE
38.63%
ARL
-11.25%
Profit Margin
ACRE
-8.77%
ARL
11.74%
ROE
ACRE
-1.42%
ARL
0.86%
ROA
ACRE
-0.46%
ARL
-0.3%

Growth

Revenue Growth
ACRE
77.3%
ARL
7.7%
Earnings Growth
ACRE
--
ARL
--

Financial Health

Debt/Equity
ACRE
1.55
ARL
0.28
Current Ratio
ACRE
22.97
ARL
3.13
Quick Ratio
ACRE
22.25
ARL
2.79

Dividends

Dividend Yield
ACRE
12.35%
ARL
--
Payout Ratio
ACRE
2266.67%
ARL
0.0%

AI Verdict

ACRE BEARISH

ACRE exhibits severe financial distress with a Piotroski F-Score of 2/9, indicating weak fundamental health. Despite a low Price/Book of 0.51 and a high dividend yield of 12.35%, the company reports negative profit margins (-8.77%) and ROE (-1.42%), with an unsustainable payout ratio of 2,266.67%. Revenue growth is strong at 77.30% YoY, but earnings volatility is extreme, including massive negative surprises, while insider selling and a bearish technical trend reinforce caution. Analysts concur with a 'hold' rating and a target price below current levels, suggesting limited upside.

Strengths
High year-over-year revenue growth (77.30%) indicating strong top-line expansion
Attractive dividend yield of 12.35% offering high income potential
Low Price/Book ratio of 0.51 suggesting possible undervaluation relative to book value
Risks
Critically low Piotroski F-Score of 2/9 signaling severe financial weakness
Extremely high payout ratio (2,266.67%) indicating dividend is not sustainable from earnings
Negative net income and profit margin (-8.77%) despite revenue growth
ARL BEARISH

The Advanced Deterministic Scorecard reveals severe financial health concerns with a Piotroski F-Score of just 2/9, indicating weak fundamentals. Despite a low Price/Book ratio of 0.44 and a current price ($16.66) near the Graham Number ($17.19), profitability is inconsistent, with a negative operating margin (-11.25%) and ROA (-0.30%). Earnings volatility is extreme, highlighted by a -35% average earnings surprise and a -216.7% most recent Q/Q EPS decline. Combined with a bearish technical trend (10/100) and lack of analyst coverage, the stock presents significant risk despite modest revenue growth and strong insider sentiment.

Strengths
Current price ($16.66) is near the defensive Graham Number ($17.19), suggesting limited downside in a liquidation scenario
Low Price/Book ratio of 0.44 indicates the stock trades below book value, potentially signaling undervaluation
Revenue growth of 7.70% YoY shows top-line expansion in a challenging real estate environment
Risks
Critically low Piotroski F-Score of 2/9 signals severe financial distress and weak operating performance
Negative operating margin (-11.25%) and ROA (-0.30%) reflect core business unprofitability
Extreme earnings volatility: average earnings surprise of -35% and a -216.7% Q/Q EPS decline indicate unreliable profitability

Compare Another Pair

ACRE vs ARL: Head-to-Head Comparison

This page compares Ares Commercial Real Estate Corporation (ACRE) and American Realty Investors, Inc. (ARL) 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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