ACRES Commercial Realty (NYSE:ACR) versus Franklin BSP Realty Trust (NYSE:FBRT) Financial Comparison

ACRES Commercial Realty (NYSE:ACR) and Franklin BSP Realty Trust (NYSE:FBRT) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Volatility and Risk

ACRES Commercial Realty has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Franklin BSP Realty Trust has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Valuation & Earnings

This table compares ACRES Commercial Realty and Franklin BSP Realty Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ACRES Commercial Realty	$79.95 million	1.56	$21.32 million	$0.65	26.96
Franklin BSP Realty Trust	$270.07 million	2.30	$82.27 million	$0.51	15.84

Franklin BSP Realty Trust has higher revenue and earnings than ACRES Commercial Realty. Franklin BSP Realty Trust 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ACRES Commercial Realty	37.20%	5.61%	1.36%
Franklin BSP Realty Trust	24.26%	6.46%	1.34%

Analyst Ratings

This is a summary of recent ratings and target prices for ACRES Commercial Realty and Franklin BSP Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ACRES Commercial Realty	0	2	2	0	2.50
Franklin BSP Realty Trust	1	1	3	0	2.40

ACRES Commercial Realty currently has a consensus target price of $24.50, indicating a potential upside of 39.80%. Franklin BSP Realty Trust has a consensus target price of $11.50, indicating a potential upside of 42.38%. Given Franklin BSP Realty Trust’s higher possible upside, analysts clearly believe Franklin BSP Realty Trust is more favorable than ACRES Commercial Realty.

Institutional & Insider Ownership

40.0% of ACRES Commercial Realty shares are held by institutional investors. Comparatively, 59.9% of Franklin BSP Realty Trust shares are held by institutional investors. 4.6% of ACRES Commercial Realty shares are held by insiders. Comparatively, 1.3% of Franklin BSP Realty Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

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 Franklin BSP Realty Trust

Benefit Street Partners operates as a self-managed real estate investment trust (REIT). BSP earns income from investing in a leveraged portfolio of residential mortgage pass-through securities consisting almost exclusively of adjustable-rate mortgage (ARM) securities issued and guaranteed by government-sponsored enterprises, either Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the government-sponsored enterprises (GSEs)), or by an agency of the federal government, Government National Mortgage Association (Ginnie Mae). BSP’s investment strategy focuses on managing a portfolio of residential mortgage investments consisting almost exclusively of ARM Agency Securities. As of December 31, 2012, the Company’s securities consisted of Agency Securities classified as available-for-sale and Residential mortgage securities classified as held-to-maturity.