Head-To-Head Analysis: ACRES Commercial Realty (NYSE:ACR) and Welltower (NYSE:WELL)

ACRES Commercial Realty (NYSE:ACR) and Welltower (NYSE:WELL) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Institutional & Insider Ownership

40.0% of ACRES Commercial Realty shares are owned by institutional investors. Comparatively, 94.8% of Welltower shares are owned by institutional investors. 3.0% of ACRES Commercial Realty shares are owned by company insiders. Comparatively, 0.1% of Welltower shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

ACRES Commercial Realty has a beta of 1.99, indicating that its share price is 99% more volatile than the S&P 500. Comparatively, Welltower has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for ACRES Commercial Realty and Welltower, 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
Welltower	0	4	9	1	2.79

ACRES Commercial Realty currently has a consensus target price of $15.50, suggesting a potential upside of 13.97%. Welltower has a consensus target price of $96.07, suggesting a potential downside of 3.11%. Given ACRES Commercial Realty’s stronger consensus rating and higher possible upside, research analysts plainly believe ACRES Commercial Realty is more favorable than Welltower.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ACRES Commercial Realty	28.51%	7.75%	1.54%
Welltower	6.37%	1.77%	1.04%

Valuation and Earnings

This table compares ACRES Commercial Realty and Welltower’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ACRES Commercial Realty	$91.13 million	1.14	$22.39 million	$0.70	19.43
Welltower	$6.76 billion	8.77	$340.09 million	$0.81	122.42

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

Summary

Welltower beats ACRES Commercial Realty on 8 of the 15 factors compared between the two stocks.

About ACRES Commercial Realty

ACRES Commercial Realty Corp., a real estate investment trust (REIT), focuses on the origination, holding, and management of commercial real estate mortgage loans and equity investments in commercial real estate property in the United States. It invests in commercial real estate-related assets, including floating-rate first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine financing, preferred equity investments, and commercial mortgage-backed securities. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. 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 Welltower

Welltower Inc. (NYSE:WELL), a REIT and S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. Welltower invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate and infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience. Welltower owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties.