ACRES Commercial Realty (NYSE:ACR) and AGNC Investment (NASDAQ:AGNC) Financial Survey

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for AGNC Investment and ACRES Commercial Realty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AGNC Investment	0	6	5	0	2.45
ACRES Commercial Realty	0	3	3	0	2.50

AGNC Investment currently has a consensus target price of $10.41, indicating a potential downside of 12.18%. ACRES Commercial Realty has a consensus target price of $24.50, indicating a potential upside of 22.76%. Given ACRES Commercial Realty’s stronger consensus rating and higher possible upside, analysts plainly believe ACRES Commercial Realty is more favorable than AGNC Investment.

Institutional and Insider Ownership

38.3% of AGNC Investment shares are owned by institutional investors. Comparatively, 40.0% of ACRES Commercial Realty shares are owned by institutional investors. 0.4% of AGNC Investment shares are owned by insiders. Comparatively, 3.9% of ACRES Commercial Realty shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

AGNC Investment has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, ACRES Commercial Realty has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AGNC Investment	24.40%	18.84%	1.66%
ACRES Commercial Realty	35.16%	4.74%	1.16%

Earnings and Valuation

This table compares AGNC Investment and ACRES Commercial Realty”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AGNC Investment	$2.95 billion	4.31	$863.00 million	$0.67	17.69
ACRES Commercial Realty	$83.49 million	1.74	$29.27 million	$0.96	20.79

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

About AGNC Investment

AGNC Investment Corp., formerly American Capital Agency Corp., is a real estate investment trust. The Company invests in agency residential mortgage-backed securities on a leveraged basis. Its investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) for which the principal and interest payments are guaranteed by a government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) (collectively, GSEs). Its agency securities include agency residential mortgage-backed securities (Agency RMBS) and to-be-announced forward contracts (TBAs). Its Non-Agency Securities include credit risk transfer securities (CRT), non-agency residential mortgage-backed securities (Non-Agency RMBS) and commercial mortgage-backed securities (CMBS).

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.