Ares Commercial Real Estate (ACRE)vsStarwood Property Trust Inc (STWD)
ACRE
Ares Commercial Real Estate
$4.99
-1.19%
REAL ESTATE · Cap: $273.52M
STWD
Starwood Property Trust Inc
$17.05
-0.23%
REAL ESTATE · Cap: $6.47B
Smart Verdict
WallStSmart Research — data-driven comparison
Starwood Property Trust Inc generates 962% more annual revenue ($580.84M vs $54.71M). STWD leads profitability with a 60.5% profit margin vs -36.3%. STWD appears more attractively valued with a PEG of 1.74. STWD earns a higher WallStSmart Score of 59/100 (C).
ACRE
Hold38
out of 100
Grade: F
STWD
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+82.8%
Fair Value
$32.29
Current Price
$4.99
$27.30 discount
Margin of Safety
+84.7%
Fair Value
$118.33
Current Price
$17.05
$101.28 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 1598.0% YoY
Reasonable price relative to book value
Keeps 61 of every $100 in revenue as profit
Attractively priced relative to earnings
Revenue surging 21.8% year-over-year
Areas to Watch
Smaller company, higher risk/reward
Expensive relative to growth rate
ROE of -4.0% — below average capital efficiency
Revenue declined 88.6%
Expensive relative to growth rate
ROE of 5.3% — below average capital efficiency
Weak financial health signals
Earnings declined 60.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : ACRE
The strongest argument for ACRE centers on Price/Book, EPS Growth.
Bull Case : STWD
The strongest argument for STWD centers on Price/Book, Profit Margin, P/E Ratio. Profitability is solid with margins at 60.5% and operating margin at 17.4%. Revenue growth of 21.8% 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 : STWD
The primary concerns for STWD are PEG Ratio, Return on Equity, Piotroski F-Score. Debt-to-equity of 3.47 is elevated, increasing financial risk.
Key Dynamics to Monitor
ACRE profiles as a turnaround stock while STWD is a growth play — different risk/reward profiles.
ACRE carries more volatility with a beta of 1.23 — expect wider price swings.
STWD is growing revenue faster at 21.8% — sustainability is the question.
STWD generates stronger free cash flow (-56M), providing more financial flexibility.
Bottom Line
STWD scores higher overall (59/100 vs 38/100), backed by strong 60.5% margins and 21.8% 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.
Starwood Property Trust Inc
REAL ESTATE · REIT - MORTGAGE · USA
Starwood Property Trust, Inc. is a real estate investment trust (REIT) in the United States and Europe. The company is headquartered in Greenwich, Connecticut.
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