ACRES Commercial Realty (NYSE:ACR) vs. Adamas Trust (NASDAQ:ADAM) Head to Head Survey

ACRES Commercial Realty (NYSE:ACR) and Adamas Trust (NASDAQ:ADAM) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Analyst Ratings

This is a summary of current recommendations and price targets for ACRES Commercial Realty and Adamas Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ACRES Commercial Realty	1	1	2	0	2.25
Adamas Trust	0	3	1	1	2.60

ACRES Commercial Realty currently has a consensus price target of $24.50, indicating a potential upside of 59.03%. Adamas Trust has a consensus price target of $9.50, indicating a potential downside of 0.11%. Given ACRES Commercial Realty’s higher probable upside, analysts plainly believe ACRES Commercial Realty is more favorable than Adamas Trust.

Institutional and Insider Ownership

40.0% of ACRES Commercial Realty shares are owned by institutional investors. Comparatively, 54.9% of Adamas Trust shares are owned by institutional investors. 4.6% of ACRES Commercial Realty shares are owned by company insiders. Comparatively, 2.0% of Adamas Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

ACRES Commercial Realty has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Adamas Trust has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Earnings and Valuation

This table compares ACRES Commercial Realty and Adamas Trust”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ACRES Commercial Realty	$79.95 million	1.37	$21.32 million	($1.12)	-13.76
Adamas Trust	$601.95 million	1.42	$149.05 million	$1.68	5.66

Adamas Trust has higher revenue and earnings than ACRES Commercial Realty. ACRES Commercial Realty is trading at a lower price-to-earnings ratio than Adamas Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ACRES Commercial Realty and Adamas Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ACRES Commercial Realty	22.62%	2.47%	0.60%
Adamas Trust	29.82%	14.72%	1.04%

Summary

Adamas Trust beats ACRES Commercial Realty on 12 of the 15 factors compared between the two stocks.

About ACRES Commercial Realty

ACRES Commercial Realty Corp., a real estate investment trust (REIT), focuses on the origination, holding, and management of commercial real estate mortgage loans and equity investments in commercial real estate property in the United States. It invests in commercial real estate-related assets, including floating-rate first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine financing, preferred equity investments, and commercial mortgage-backed securities. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Exantas Capital Corp. and changed its name to ACRES Commercial Realty Corp. in February 2021. ACRES Commercial Realty Corp. was incorporated in 2005 and is based in Uniondale, New York.

About Adamas Trust

New York Mortgage Trust, Inc. acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States. Its targeted investments include residential loans, second mortgages, and business purpose loans; structured multi-family property investments, such as preferred equity in, and mezzanine loans to owners of multi-family properties, as well as joint venture equity investments in multi-family properties; non-agency residential mortgage-backed securities (RMBS); agency RMBS; commercial mortgage-backed securities (CMBS); and other mortgage, residential housing, and credit-related assets. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was incorporated in 2003 and is headquartered in New York, New York.