ACRES Commercial Realty (NYSE:ACR) versus Modiv (NYSE:MDV) Critical Review

ACRES Commercial Realty (NYSE:ACRGet Rating) and Modiv (NYSE:MDVGet Rating) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for ACRES Commercial Realty and Modiv, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ACRES Commercial Realty 0 0 1 0 3.00
Modiv 0 0 6 0 3.00

ACRES Commercial Realty presently has a consensus target price of $14.00, indicating a potential upside of 44.63%. Modiv has a consensus target price of $19.30, indicating a potential upside of 63.70%. Given Modiv’s higher probable upside, analysts plainly believe Modiv is more favorable than ACRES Commercial Realty.

Profitability

This table compares ACRES Commercial Realty and Modiv’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ACRES Commercial Realty 30.43% 4.12% 0.80%
Modiv -16.33% -2.64% -1.41%

Earnings & Valuation

This table compares ACRES Commercial Realty and Modiv’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ACRES Commercial Realty $50.08 million 1.69 $33.92 million $0.62 15.61
Modiv $36.22 million 2.43 -$440,000.00 ($1.39) -8.48

ACRES Commercial Realty has higher revenue and earnings than Modiv. Modiv is trading at a lower price-to-earnings ratio than ACRES Commercial Realty, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

23.6% of ACRES Commercial Realty shares are held by institutional investors. Comparatively, 6.2% of Modiv shares are held by institutional investors. 3.0% of ACRES Commercial Realty shares are held by company insiders. Comparatively, 4.2% of Modiv shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

ACRES Commercial Realty beats Modiv on 8 of the 12 factors compared between the two stocks.

About ACRES Commercial Realty

(Get Rating)

ACRES Commercial Realty Corp., a real estate investment trust (REIT), focuses on the origination, holding, and management of commercial real estate mortgage loans and other commercial real estate-related debt investments in the United States. It invests in commercial real estate-related assets, including floating and fixed rate first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine debt, preferred equity investments, commercial mortgage-backed securities, and commercial real estate equity and preferred equity investments. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income. The company was formerly known as Exantas Capital Corp. and changed its name to ACRES Commercial Realty Corp. in February 2021. ACRES Commercial Realty Corp. was incorporated in 2005 and is based in Uniondale, New York.

About Modiv

(Get Rating)

Modiv Inc., (the Company) was incorporated on May 14, 2015 as a Maryland corporation. The Company was formed to primarily invest, directly or indirectly, in real estate owning entities which own single-tenant income-producing properties located in the United States, which are leased to creditworthy tenants under long-term net leases. The Company's goal is to generate current income for investors and long-term capital appreciation in the value of its properties.

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