Chimera Investment (NYSE:CIM) vs. ACRES Commercial Realty (NYSE:ACR) Financial Comparison

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ACRES Commercial Realty	0	1	1	0	2.50
Chimera Investment	0	2	1	0	2.33

ACRES Commercial Realty presently has a consensus price target of $22.00, suggesting a potential upside of 15.10%. Chimera Investment has a consensus price target of $15.50, suggesting a potential upside of 9.97%. Given ACRES Commercial Realty’s stronger consensus rating and higher probable upside, research analysts plainly believe ACRES Commercial Realty is more favorable than Chimera Investment.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ACRES Commercial Realty	22.98%	2.95%	0.68%
Chimera Investment	25.12%	7.25%	1.44%

Institutional & Insider Ownership

40.0% of ACRES Commercial Realty shares are held by institutional investors. Comparatively, 48.4% of Chimera Investment shares are held by institutional investors. 3.9% of ACRES Commercial Realty shares are held by company insiders. Comparatively, 0.9% of Chimera Investment shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares ACRES Commercial Realty and Chimera Investment”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ACRES Commercial Realty	$83.49 million	1.69	$29.27 million	$0.29	65.91
Chimera Investment	$760.95 million	1.50	$176.07 million	$1.50	9.40

Chimera Investment has higher revenue and earnings than ACRES Commercial Realty. Chimera 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.

Volatility and Risk

ACRES Commercial Realty has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500. Comparatively, Chimera Investment has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500.

Summary

Chimera Investment beats ACRES Commercial Realty on 8 of the 13 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 Chimera Investment

Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. The company, through its subsidiaries, invests in a portfolio of mortgage assets, including residential mortgage loans, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, agency mortgage-backed securities secured by pools of commercial mortgage loans, business purpose and investor loans, and other real estate related securities. It invests in investment grade, non-investment grade, and non-rated classes. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, it intends to distribute at least 90% of its taxable income as dividends to shareholders. Chimera Investment Corporation was incorporated in 2007 and is headquartered in New York, New York.