Ares Commercial Real Estate (ACRE)vsStarwood Property Trust Inc (STWD)
ACRE
Ares Commercial Real Estate
$4.84
+2.33%
REAL ESTATE · Cap: $260.23M
STWD
Starwood Property Trust Inc
$17.48
+0.63%
REAL ESTATE · Cap: $6.61B
Smart Verdict
WallStSmart Research — data-driven comparison
Starwood Property Trust Inc generates 654% more annual revenue ($547.93M vs $72.68M). STWD leads profitability with a 75.1% profit margin vs -1.2%. ACRE appears more attractively valued with a PEG of 2.57. STWD earns a higher WallStSmart Score of 67/100 (B-).
ACRE
Hold41
out of 100
Grade: D
STWD
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ACRE.
Margin of Safety
+66.4%
Fair Value
$53.82
Current Price
$17.48
$36.34 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Reasonable price relative to book value
Keeps 75 of every $100 in revenue as profit
Revenue surging 62.6% year-over-year
Earnings expanding 78.0% YoY
Attractively priced relative to earnings
Areas to Watch
Smaller company, higher risk/reward
Expensive relative to growth rate
ROE of -0.2% — below average capital efficiency
Revenue declined 81.7%
ROE of 6.0% — below average capital efficiency
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.
Bull Case : STWD
The strongest argument for STWD centers on Price/Book, Profit Margin, Revenue Growth. Profitability is solid with margins at 75.1% and operating margin at 11.2%. Revenue growth of 62.6% demonstrates continued momentum.
Bear Case : ACRE
The primary concerns for ACRE are Market Cap, PEG Ratio, Return on Equity. Debt-to-equity of 2.06 is elevated, increasing financial risk.
Bear Case : STWD
The primary concerns for STWD are Return on Equity, PEG Ratio, Altman Z-Score.
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 1.28 — expect wider price swings.
STWD is growing revenue faster at 62.6% — sustainability is the question.
STWD generates stronger free cash flow (190M), providing more financial flexibility.
Bottom Line
STWD scores higher overall (67/100 vs 41/100), backed by strong 75.1% margins and 62.6% revenue growth. 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.
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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