Comparing ACRES Commercial Realty (NYSE:ACR) and CV (OTCMKTS:CVHL)

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

Risk and Volatility

CV has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, ACRES Commercial Realty has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CV	N/A	N/A	N/A
ACRES Commercial Realty	35.16%	4.74%	1.16%

Valuation and Earnings

This table compares CV 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
CV	$25.67 million	N/A	-$18.15 million	N/A	N/A
ACRES Commercial Realty	$83.49 million	1.79	$29.27 million	$0.96	21.39

ACRES Commercial Realty has higher revenue and earnings than CV.

Institutional and Insider Ownership

40.0% of ACRES Commercial Realty shares are owned by institutional investors. 7.6% of CV shares are owned by company insiders. Comparatively, 3.9% of ACRES Commercial Realty shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for CV and ACRES Commercial Realty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CV	0	0	0	0	0.00
ACRES Commercial Realty	0	3	3	0	2.50

ACRES Commercial Realty has a consensus price target of $24.50, suggesting a potential upside of 19.31%. Given ACRES Commercial Realty’s stronger consensus rating and higher possible upside, analysts plainly believe ACRES Commercial Realty is more favorable than CV.

Summary

ACRES Commercial Realty beats CV on 9 of the 11 factors compared between the two stocks.

About CV

CV Holdings, Inc. operates as a specialty finance company. It owns finance platforms across various businesses, including small-ticket equipment financing and commercial real estate bridge lending. CV Holdings, Inc. was incorporated in 2005 and is based in Newport Beach, California.

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.