Angel Oak Mortgage REIT (NYSE:AOMR) & ACRES Commercial Realty (NYSE:ACR) Head to Head Contrast

Angel Oak Mortgage REIT (NYSE:AOMR) and ACRES Commercial Realty (NYSE:ACR) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Insider and Institutional Ownership

80.2% of Angel Oak Mortgage REIT shares are owned by institutional investors. Comparatively, 40.0% of ACRES Commercial Realty shares are owned by institutional investors. 2.9% of Angel Oak Mortgage REIT shares are owned by company insiders. Comparatively, 4.6% of ACRES Commercial Realty shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Angel Oak Mortgage REIT and ACRES Commercial Realty”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Angel Oak Mortgage REIT	$143.65 million	1.46	$44.02 million	$0.64	13.16
ACRES Commercial Realty	$79.95 million	1.61	$21.32 million	$0.65	27.78

Angel Oak Mortgage REIT has higher revenue and earnings than ACRES Commercial Realty. Angel Oak Mortgage REIT 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.

Analyst Recommendations

This is a summary of recent recommendations for Angel Oak Mortgage REIT and ACRES Commercial Realty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Angel Oak Mortgage REIT	1	2	1	0	2.00
ACRES Commercial Realty	0	2	2	0	2.50

Angel Oak Mortgage REIT currently has a consensus price target of $10.13, indicating a potential upside of 20.18%. ACRES Commercial Realty has a consensus price target of $24.50, indicating a potential upside of 35.69%. Given ACRES Commercial Realty’s stronger consensus rating and higher probable upside, analysts clearly believe ACRES Commercial Realty is more favorable than Angel Oak Mortgage REIT.

Profitability

This table compares Angel Oak Mortgage REIT and ACRES Commercial Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Angel Oak Mortgage REIT	10.64%	5.25%	0.50%
ACRES Commercial Realty	37.20%	5.61%	1.36%

Risk & Volatility

Angel Oak Mortgage REIT has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, ACRES Commercial Realty has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Summary

ACRES Commercial Realty beats Angel Oak Mortgage REIT on 10 of the 14 factors compared between the two stocks.

About Angel Oak Mortgage REIT

Angel Oak Mortgage REIT, Inc., a real estate finance company, focuses on acquiring and investing in first lien non- qualified mortgage loans and other mortgage-related assets in the United States mortgage market. It offers investment securities; residential mortgage loans; and commercial mortgage loans. 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 2018 and is headquartered in Atlanta, Georgia.

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.