Ares Commercial Real Estate (ACRE)vsAnnaly Capital Management, Inc. (NLY)
ACRE
Ares Commercial Real Estate
$3.36
-1.75%
REAL ESTATE · Cap: $186.42M
NLY
Annaly Capital Management, Inc.
$18.23
-1.30%
REAL ESTATE · Cap: $13.79B
Smart Verdict
WallStSmart Research — data-driven comparison
Annaly Capital Management, Inc. generates 3821% more annual revenue ($1.39B vs $35.49M). NLY leads profitability with a 80.3% profit margin vs -12.5%. ACRE appears more attractively valued with a PEG of 2.57. NLY earns a higher WallStSmart Score of 73/100 (B).
ACRE
Hold48
out of 100
Grade: D+
NLY
Strong Buy73
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+72.1%
Fair Value
$19.99
Current Price
$3.36
$16.63 discount
Intrinsic value data unavailable for NLY.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Strong operational efficiency at 33.5%
Earnings expanding 1598.0% YoY
Reasonable price relative to book value
Keeps 80 of every $100 in revenue as profit
Strong operational efficiency at 107.3%
Revenue surging 479.4% year-over-year
Earnings expanding 3426.0% YoY
Attractively priced relative to earnings
Areas to Watch
Smaller company, higher risk/reward
Expensive relative to growth rate
ROE of -4.0% — below average capital efficiency
Revenue declined 58.8%
ROE of 7.2% — below average capital efficiency
Weak financial health signals
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : ACRE
The strongest argument for ACRE centers on Price/Book, Operating Margin, EPS Growth.
Bull Case : NLY
The strongest argument for NLY centers on Price/Book, Profit Margin, Operating Margin. Profitability is solid with margins at 80.3% and operating margin at 107.3%. Revenue growth of 479.4% 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 : NLY
The primary concerns for NLY are Return on Equity, Piotroski F-Score, PEG Ratio. Debt-to-equity of 8.04 is elevated, increasing financial risk.
Key Dynamics to Monitor
ACRE profiles as a turnaround stock while NLY is a growth play — different risk/reward profiles.
NLY carries more volatility with a beta of 1.28 — expect wider price swings.
NLY is growing revenue faster at 479.4% — sustainability is the question.
NLY generates stronger free cash flow (1.4B), providing more financial flexibility.
Bottom Line
NLY scores higher overall (73/100 vs 48/100), backed by strong 80.3% margins and 479.4% revenue growth. ACRE offers better value entry with a 72.1% margin of safety. Both earn "Strong 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.
Annaly Capital Management, Inc.
REAL ESTATE · REIT - MORTGAGE · USA
Annaly Capital Management, Inc., a diversified capital manager, invests in and finances residential and commercial assets. The company is headquartered in New York, New York.
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