Head-To-Head Analysis: Adamas Trust (NASDAQ:ADAM) and ACRES Commercial Realty (NYSE:ACR)

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Adamas Trust and ACRES Commercial Realty, as reported by MarketBeat.com.

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

Adamas Trust presently has a consensus price target of $9.50, suggesting a potential upside of 4.74%. ACRES Commercial Realty has a consensus price target of $24.50, suggesting a potential upside of 39.63%. Given ACRES Commercial Realty’s higher possible upside, analysts clearly believe ACRES Commercial Realty is more favorable than Adamas Trust.

Earnings and Valuation

This table compares Adamas Trust 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
Adamas Trust	$601.95 million	1.35	$149.05 million	$1.68	5.40
ACRES Commercial Realty	$79.95 million	1.56	$21.32 million	($1.12)	-15.67

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

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

Volatility and Risk

Adamas Trust has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, ACRES Commercial Realty has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Institutional and Insider Ownership

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

Summary

Adamas Trust beats ACRES Commercial Realty on 9 of the 13 factors compared between the two stocks.

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.

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.