ACRES Commercial Realty (NYSE:ACR) and Welltower (NYSE:WELL) Critical Contrast

Welltower (NYSE:WELL) and ACRES Commercial Realty (NYSE:ACR) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Institutional and Insider Ownership

94.8% of Welltower shares are held by institutional investors. Comparatively, 40.0% of ACRES Commercial Realty shares are held by institutional investors. 0.1% of Welltower shares are held by company insiders. Comparatively, 3.0% of ACRES Commercial Realty shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Welltower and ACRES Commercial Realty’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Welltower	$6.76 billion	8.77	$340.09 million	$0.81	122.42
ACRES Commercial Realty	$91.13 million	1.14	$22.39 million	$0.70	19.43

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

Risk & Volatility

Welltower has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, ACRES Commercial Realty has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Welltower and ACRES Commercial Realty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Welltower	0	4	9	1	2.79
ACRES Commercial Realty	0	0	1	0	3.00

Welltower presently has a consensus target price of $96.07, suggesting a potential downside of 3.11%. ACRES Commercial Realty has a consensus target price of $15.50, suggesting a potential upside of 13.97%. Given ACRES Commercial Realty’s stronger consensus rating and higher probable upside, analysts clearly believe ACRES Commercial Realty is more favorable than Welltower.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Welltower	6.37%	1.77%	1.04%
ACRES Commercial Realty	28.51%	7.75%	1.54%

Summary

Welltower beats ACRES Commercial Realty on 8 of the 15 factors compared between the two stocks.

About Welltower

Welltower Inc. (NYSE:WELL), a REIT and S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. Welltower invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate and infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience. Welltower owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties.

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.