Reviewing AG Mortgage Investment Trust (NYSE:MITT) and ACRES Commercial Realty (NYSE:ACR)

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for AG Mortgage Investment Trust and ACRES Commercial Realty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AG Mortgage Investment Trust	0	3	6	0	2.67
ACRES Commercial Realty	1	1	2	0	2.25

AG Mortgage Investment Trust presently has a consensus target price of $8.93, indicating a potential upside of 33.46%. ACRES Commercial Realty has a consensus target price of $24.50, indicating a potential upside of 67.58%. Given ACRES Commercial Realty’s higher probable upside, analysts plainly believe ACRES Commercial Realty is more favorable than AG Mortgage Investment Trust.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AG Mortgage Investment Trust	8.55%	15.59%	0.61%
ACRES Commercial Realty	22.62%	2.42%	0.58%

Earnings and Valuation

This table compares AG Mortgage Investment Trust and ACRES Commercial Realty”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AG Mortgage Investment Trust	$480.33 million	0.44	$48.67 million	$0.74	9.04
ACRES Commercial Realty	$79.95 million	1.30	$21.32 million	($1.12)	-13.05

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

Risk & Volatility

AG Mortgage Investment Trust has a beta of 1.65, suggesting that its stock price is 65% more volatile than the S&P 500. Comparatively, ACRES Commercial Realty has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Insider & Institutional Ownership

27.3% of AG Mortgage Investment Trust shares are held by institutional investors. Comparatively, 40.0% of ACRES Commercial Realty shares are held by institutional investors. 3.3% of AG Mortgage Investment Trust shares are held by company insiders. Comparatively, 4.6% of ACRES Commercial Realty shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

AG Mortgage Investment Trust beats ACRES Commercial Realty on 9 of the 14 factors compared between the two stocks.

About AG Mortgage Investment Trust

AG Mortgage Investment Trust, Inc. operates as a residential mortgage real estate investment trust in the United States. Its investment portfolio includes residential investments, including non-agency loans, agency-eligible loans, re-and non-performing loans, and non-agency residential mortgage-backed securities, as well as commercial loans 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. AG Mortgage Investment Trust, Inc. was incorporated in 2011 and is based 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.