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ACRE vs NXDT

ACRE
Ares Commercial Real Estate Corporation
BEARISH
Price
$4.85
Market Cap
$266.9M
Sector
Real Estate
AI Confidence
85%
NXDT
NexPoint Diversified Real Estate Trust
BEARISH
Price
$5.42
Market Cap
$272.2M
Sector
Real Estate
AI Confidence
90%

Valuation

P/E Ratio
ACRE
--
NXDT
--
Forward P/E
ACRE
33.21
NXDT
--
P/B Ratio
ACRE
0.51
NXDT
0.39
P/S Ratio
ACRE
3.04
NXDT
3.21
EV/EBITDA
ACRE
--
NXDT
38.33

Profitability

Gross Margin
ACRE
100.0%
NXDT
62.68%
Operating Margin
ACRE
38.63%
NXDT
-19.13%
Profit Margin
ACRE
-8.77%
NXDT
-147.68%
ROE
ACRE
-1.42%
NXDT
-16.35%
ROA
ACRE
-0.46%
NXDT
-0.02%

Growth

Revenue Growth
ACRE
77.3%
NXDT
-32.9%
Earnings Growth
ACRE
--
NXDT
--

Financial Health

Debt/Equity
ACRE
1.55
NXDT
0.43
Current Ratio
ACRE
22.97
NXDT
0.23
Quick Ratio
ACRE
22.25
NXDT
0.04

Dividends

Dividend Yield
ACRE
12.35%
NXDT
11.07%
Payout Ratio
ACRE
2266.67%
NXDT
53.92%

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
NXDT BEARISH

NXDT exhibits severe fundamental distress, highlighted by a weak Piotroski F-Score of 2/9 and a critical liquidity crisis with a Quick Ratio of 0.04. Despite a recent 1-year price surge of 82.5%, the underlying business is deteriorating rapidly, evidenced by a catastrophic Q/Q revenue decline of 261.98% and a profit margin of -147.68%. The stock trades at a deep discount to book value (P/B 0.39), but this is likely a reflection of impaired assets and insolvency risk rather than a value opportunity. The disconnect between the technical price action and the deterministic health scores suggests a speculative bubble or a temporary market anomaly.

Strengths
Deeply discounted Price-to-Book ratio (0.39)
Relatively low Debt/Equity ratio (0.43)
High dividend yield (11.07%)
Risks
Severe liquidity risk (Current Ratio 0.23, Quick Ratio 0.04)
Collapsing revenue growth (-261.98% Q/Q)
Extreme negative profitability (Profit Margin -147.68%)

Compare Another Pair

ACRE vs NXDT: Head-to-Head Comparison

This page compares Ares Commercial Real Estate Corporation (ACRE) and NexPoint Diversified Real Estate Trust (NXDT) 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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