WallStSmart

Ares Commercial Real Estate (ACRE)vsAGNC Investment Corp. (AGNCM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AGNC Investment Corp. generates 2834% more annual revenue ($1.60B vs $54.71M). AGNCM leads profitability with a 91.7% profit margin vs -36.3%. AGNCM earns a higher WallStSmart Score of 61/100 (C+).

ACRE

Hold

38

out of 100

Grade: F

Growth: 4.7Profit: 2.0Value: 5.7Quality: 3.0
Piotroski: 4/9Altman Z: -0.41

AGNCM

Buy

61

out of 100

Grade: C+

Growth: 7.3Profit: 7.5Value: 4.7Quality: 2.5
Piotroski: 3/9Altman Z: -0.95
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACREUndervalued (+82.8%)

Margin of Safety

+82.8%

Fair Value

$32.29

Current Price

$4.99

$27.30 discount

UndervaluedFair: $32.29Overvalued
AGNCMOvervalued (-11.3%)

Margin of Safety

-11.3%

Fair Value

$22.48

Current Price

$25.06

$2.58 premium

UndervaluedFair: $22.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACRE2 strengths · Avg: 10.0/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

EPS GrowthGrowth
1598.0%10/10

Earnings expanding 1598.0% YoY

AGNCM5 strengths · Avg: 9.6/10
Profit MarginProfitability
91.7%10/10

Keeps 92 of every $100 in revenue as profit

Operating MarginProfitability
129.8%10/10

Strong operational efficiency at 129.8%

Revenue GrowthGrowth
546.0%10/10

Revenue surging 546.0% year-over-year

EPS GrowthGrowth
772.0%10/10

Earnings expanding 772.0% YoY

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Areas to Watch

ACRE4 concerns · Avg: 2.3/10
Market CapQuality
$273.52M3/10

Smaller company, higher risk/reward

PEG RatioValuation
2.572/10

Expensive relative to growth rate

Return on EquityProfitability
-4.0%2/10

ROE of -4.0% — below average capital efficiency

Revenue GrowthGrowth
-88.6%2/10

Revenue declined 88.6%

AGNCM3 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
-0.952/10

Distress zone — elevated risk

Debt/EquityHealth
8.591/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : ACRE

The strongest argument for ACRE centers on Price/Book, EPS Growth.

Bull Case : AGNCM

The strongest argument for AGNCM centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 91.7% and operating margin at 129.8%. Revenue growth of 546.0% demonstrates continued momentum.

Bear Case : ACRE

The primary concerns for ACRE are Market Cap, PEG Ratio, Return on Equity. Debt-to-equity of 2.58 is elevated, increasing financial risk.

Bear Case : AGNCM

The primary concerns for AGNCM are Piotroski F-Score, Altman Z-Score, Debt/Equity. Debt-to-equity of 8.59 is elevated, increasing financial risk.

Key Dynamics to Monitor

ACRE profiles as a turnaround stock while AGNCM is a growth play — different risk/reward profiles.

AGNCM carries more volatility with a beta of 1.33 — expect wider price swings.

AGNCM is growing revenue faster at 546.0% — sustainability is the question.

AGNCM generates stronger free cash flow (387M), providing more financial flexibility.

Bottom Line

AGNCM scores higher overall (61/100 vs 38/100), backed by strong 91.7% margins and 546.0% revenue growth. ACRE offers better value entry with a 82.8% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Ares Commercial Real Estate

REAL ESTATE · REIT - MORTGAGE · USA

Ares Commercial Real Estate Corporation, a specialized finance company, originates and invests in commercial real estate loans (CRE) and related investments in the United States. The company is headquartered in New York, New York.

AGNC Investment Corp.

REAL ESTATE · REIT - MORTGAGE · USA

AGNC Investment Corp. The company is headquartered in Bethesda, Maryland.

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