WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Prologis Inc generates 27779% more annual revenue ($9.89B vs $35.49M). PLD leads profitability with a 43.1% profit margin vs -12.5%. ACRE appears more attractively valued with a PEG of 2.57. PLD earns a higher WallStSmart Score of 59/100 (C).

ACRE

Hold

48

out of 100

Grade: D+

Growth: 4.7Profit: 4.0Value: 5.7Quality: 3.0
Piotroski: 4/9Altman Z: -0.41

PLD

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 7.0Value: 6.0Quality: 4.5
Piotroski: 2/9Altman Z: 1.01
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACREUndervalued (+72.1%)

Margin of Safety

+72.1%

Fair Value

$19.99

Current Price

$3.36

$16.63 discount

UndervaluedFair: $19.99Overvalued
PLDUndervalued (+50.0%)

Margin of Safety

+50.0%

Fair Value

$256.12

Current Price

$127.98

$128.14 discount

UndervaluedFair: $256.12Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACRE3 strengths · Avg: 10.0/10
Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
33.5%10/10

Strong operational efficiency at 33.5%

EPS GrowthGrowth
1598.0%10/10

Earnings expanding 1598.0% YoY

PLD5 strengths · Avg: 9.0/10
Profit MarginProfitability
43.1%10/10

Keeps 43 of every $100 in revenue as profit

Operating MarginProfitability
42.9%10/10

Strong operational efficiency at 42.9%

Market CapQuality
$124.41B9/10

Large-cap with strong market position

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.20B8/10

Generating 1.2B in free cash flow

Areas to Watch

ACRE4 concerns · Avg: 2.3/10
Market CapQuality
$186.42M3/10

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
-58.8%2/10

Revenue declined 58.8%

PLD4 concerns · Avg: 3.0/10
P/E RatioValuation
28.2x4/10

Moderate valuation

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
111.412/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : ACRE

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

Bull Case : PLD

The strongest argument for PLD centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 43.1% and operating margin at 42.9%. Revenue growth of 10.2% 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 1.32 — expect wider price swings.

PLD is growing revenue faster at 10.2% — sustainability is the question.

PLD generates stronger free cash flow (1.2B), providing more financial flexibility.

Bottom Line

PLD scores higher overall (59/100 vs 48/100), backed by strong 43.1% margins and 10.2% revenue growth. ACRE offers better value entry with a 72.1% 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.

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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