Sachem Capital Corp. 7.125% Not (OTCMKTS:SCCB) and Ares Commercial Real Estate (NYSE:ACRE) Critical Survey

Ares Commercial Real Estate (NYSE:ACRE) and Sachem Capital Corp. 7.125% Not (OTCMKTS:SCCB) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Institutional & Insider Ownership

41.3% of Ares Commercial Real Estate shares are owned by institutional investors. Comparatively, 2.1% of Sachem Capital Corp. 7.125% Not shares are owned by institutional investors. 2.3% of Ares Commercial Real Estate shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Ares Commercial Real Estate and Sachem Capital Corp. 7.125% Not’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ares Commercial Real Estate	-8.04%	4.08%	1.23%
Sachem Capital Corp. 7.125% Not	N/A	N/A	N/A

Earnings and Valuation

This table compares Ares Commercial Real Estate and Sachem Capital Corp. 7.125% Not”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ares Commercial Real Estate	$54.83 million	4.78	-$900,000.00	($0.08)	-59.06
Sachem Capital Corp. 7.125% Not	N/A	N/A	N/A	N/A	N/A

Sachem Capital Corp. 7.125% Not has lower revenue, but higher earnings than Ares Commercial Real Estate.

Analyst Recommendations

This is a summary of recent recommendations for Ares Commercial Real Estate and Sachem Capital Corp. 7.125% Not, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ares Commercial Real Estate	2	4	1	0	1.86
Sachem Capital Corp. 7.125% Not	0	0	0	0	0.00

Ares Commercial Real Estate presently has a consensus target price of $5.25, indicating a potential upside of 11.11%. Given Ares Commercial Real Estate’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Ares Commercial Real Estate is more favorable than Sachem Capital Corp. 7.125% Not.

Summary

Ares Commercial Real Estate beats Sachem Capital Corp. 7.125% Not on 8 of the 9 factors compared between the two stocks.

About Ares Commercial Real Estate

Ares Commercial Real Estate Corporation, a specialty finance company, originates and invests in commercial real estate (CRE) loans and related investments in the United States. It provides a range of financing solutions for the owners, operators, and sponsors of CRE properties. The company originates senior mortgage loans, subordinate debt and preferred equity products, mezzanine loans, and other CRE investments, including commercial mortgage-backed securities. It has elected and qualified to be taxed as a real estate investment trust for the United States federal income tax purposes under the Internal Revenue Code of 1986. Ares Commercial Real Estate Corporation was incorporated in 2011 and is based in New York, New York.

About Sachem Capital Corp. 7.125% Not

since 2010, sachem capital has been financing opportunistic real estate transactions in the new england area. sachem capital provides quick, short-term bridge capital for real estate investors, builders or developers who need immediate funding or to solve an immediate problem. our creative real estate financing solutions are developed exclusively for those seeking alternatives to conventional bank loans. the executive team has extensive experience in real estate acquisitions, investments, management and development. our hands-on managers have the expertise to quickly assess complex opportunities and non-conventional situations to deliver a closing product that is efficient and opportunistic to our borrowers, and profitable to our shareholders. sachem capital was listed on the nyse on february 10, 2017. the company was designed to address the constant volatility and instability in today’s financial markets. we are exited to share with you this extraordinary opportunity to seize favorabl