WallStSmart

Ares Commercial Real Estate (ACRE)vsPrologis Inc (PLD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Prologis Inc generates 17551% more annual revenue ($9.66B vs $54.71M). PLD leads profitability with a 43.6% profit margin vs -36.3%. ACRE appears more attractively valued with a PEG of 2.57. PLD earns a higher WallStSmart Score of 65/100 (B-).

ACRE

Hold

38

out of 100

Grade: F

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

PLD

Strong Buy

65

out of 100

Grade: B-

Growth: 8.0Profit: 7.0Value: 5.3Quality: 4.5
Piotroski: 2/9Altman Z: 1.01
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACREUndervalued (+82.4%)

Margin of Safety

+82.4%

Fair Value

$31.72

Current Price

$4.63

$27.09 discount

UndervaluedFair: $31.72Overvalued
PLDUndervalued (+43.2%)

Margin of Safety

+43.2%

Fair Value

$259.71

Current Price

$138.96

$120.75 discount

UndervaluedFair: $259.71Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACRE2 strengths · Avg: 10.0/10
Price/BookValuation
0.5x10/10

Reasonable price relative to book value

EPS GrowthGrowth
1598.0%10/10

Earnings expanding 1598.0% YoY

PLD6 strengths · Avg: 9.2/10
Profit MarginProfitability
43.6%10/10

Keeps 44 of every $100 in revenue as profit

Operating MarginProfitability
43.0%10/10

Strong operational efficiency at 43.0%

EPS GrowthGrowth
85.3%10/10

Earnings expanding 85.3% YoY

Market CapQuality
$138.06B9/10

Large-cap with strong market position

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.14B8/10

Generating 1.1B in free cash flow

Areas to Watch

ACRE4 concerns · Avg: 2.3/10
Market CapQuality
$235.79M3/10

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%

PLD4 concerns · Avg: 3.0/10
P/E RatioValuation
33.4x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
7.9%3/10

ROE of 7.9% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
138.352/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : ACRE

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

Bull Case : PLD

The strongest argument for PLD centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 43.6% and operating margin at 43.0%. Revenue growth of 12.3% 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 : PLD

The primary concerns for PLD are P/E Ratio, Return on Equity, Piotroski F-Score.

Key Dynamics to Monitor

ACRE profiles as a turnaround stock while PLD is a mature play — different risk/reward profiles.

PLD carries more volatility with a beta of 1.34 — expect wider price swings.

PLD is growing revenue faster at 12.3% — sustainability is the question.

PLD generates stronger free cash flow (1.1B), providing more financial flexibility.

Bottom Line

PLD scores higher overall (65/100 vs 38/100), backed by strong 43.6% margins and 12.3% revenue growth. ACRE offers better value entry with a 82.4% 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.

Prologis Inc

REAL ESTATE · REIT - INDUSTRIAL · USA

Prologis, Inc. is a real estate investment trust headquartered in San Francisco, California that invests in logistics facilities, with a focus on the consumption side of the global supply chain.

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