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ACRE vs REFI

ACRE
Ares Commercial Real Estate Corporation
BEARISH
Price
$4.85
Market Cap
$266.9M
Sector
Real Estate
AI Confidence
85%
REFI
Chicago Atlantic Real Estate Finance, Inc.
BEARISH
Price
$12.11
Market Cap
$255.3M
Sector
Real Estate
AI Confidence
85%

Valuation

P/E Ratio
ACRE
--
REFI
7.21
Forward P/E
ACRE
33.21
REFI
6.31
P/B Ratio
ACRE
0.51
REFI
0.83
P/S Ratio
ACRE
3.04
REFI
4.67
EV/EBITDA
ACRE
--
REFI
--

Profitability

Gross Margin
ACRE
100.0%
REFI
100.0%
Operating Margin
ACRE
38.63%
REFI
57.7%
Profit Margin
ACRE
-8.77%
REFI
65.88%
ROE
ACRE
-1.42%
REFI
11.68%
ROA
ACRE
-0.46%
REFI
8.37%

Growth

Revenue Growth
ACRE
77.3%
REFI
2.7%
Earnings Growth
ACRE
--
REFI
-3.3%

Financial Health

Debt/Equity
ACRE
1.55
REFI
0.32
Current Ratio
ACRE
22.97
REFI
25.91
Quick Ratio
ACRE
22.25
REFI
25.91

Dividends

Dividend Yield
ACRE
12.35%
REFI
15.52%
Payout Ratio
ACRE
2266.67%
REFI
111.9%

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
REFI BEARISH

REFI exhibits significant financial fragility, highlighted by a weak Piotroski F-Score of 3/9 and a bearish technical trend of 0/100. While the stock appears cheap on a P/E (7.21) and Price/Book (0.83) basis, it is a classic value trap characterized by an unsustainable dividend payout ratio of 111.90%. Consistent earnings misses over the last four quarters and negative YoY earnings growth suggest that the current valuation is a reflection of deteriorating fundamentals rather than an opportunity.

Strengths
Low P/E ratio of 7.21 relative to sector averages
Trading below book value (P/B 0.83)
Strong profit margins (65.88%)
Risks
Unsustainable dividend payout ratio (111.90%) indicating a high risk of a dividend cut
Weak Piotroski F-Score (3/9) signaling deteriorating financial health
Consistent failure to meet earnings estimates (0/4 beats in last 4 quarters)

Compare Another Pair

ACRE vs REFI: Head-to-Head Comparison

This page compares Ares Commercial Real Estate Corporation (ACRE) and Chicago Atlantic Real Estate Finance, Inc. (REFI) 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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